RJA - a simple commodity solution

7 thg 8, 2021

Buy the common sell the covered calls. Collect the small premium and place the premium collected in GGN with a 10% yield.

Sell the longest dated calls against the common.

Agricultural commodities have been rising in price.

All of the usual narratives apply:

global warming disruption. US midwest crop disruption based on rainfall and global warming - or not. Commodity super cycle starting as inflation heats up. Basic food price inflation.

Pick a comfortable narrative.

I own the common.

I sell the covered calls.

all the best

8 thg 8, 2021

Ghi chú

Weird that the RJA chart I was using turned out to be an Apple chart. My error.

27 thg 8, 2021

Ghi chú

Closed out the long side and sold some puts for March. I kept it small and sold the puts naked. Lots of geniuses who got it right selling the outlier puts for a long time and then the weird multi sigma 3 standard deviation type move killed them off. I have naked downside risk here below $6 because I sold the common and bought in calls that I rolled to add the cash to the downside protection. then as usual I put the cash in GGN to make 10% +/- on the cash for a year. Time will tell.
all the best