LD Lossdog Research
symbol

/GC

7 matching records.

Trade idea

/GC put options

The speaker sold 3,500 puts on gold futures (/GC) with a 63-day expiration, expecting a 91% probability of profit based on the delta of 10. The trade was executed at $24 per contract, with a second tranche sold at $34. The speaker believes the trade is viable due to the mathematical relationship between delta and probability of profit, and the liquidity of the GC options compared to GLD.

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Strategyput options
Assetfutures
ExpirationAugust
Time horizon63 days
Entry / triggerGold trading around 4040-ish
Target / exitProfit from the probability of profit (91%)
Invalidation / stopIf gold significantly declines below the strike price
SpeakerSpeaker
Structure / legs
  • 63 days to expiration
  • 3,500 puts
Risks
  • Significant price movement in gold could result in losses
  • Time decay may reduce the probability of profit over time
  • Market volatility could affect the liquidity of the options
sellfuturesput options/GC
high confidenceVerify in video at 33:30 ↗
Trade idea

GC short puts

The speaker is short puts in gold (GC) at the 3500 strike price, having sold them a couple of days ago at around 19.5-20 bucks. The trade idea is based on the belief that gold will not trade above 3500, and the speaker is looking to profit from the premium collected. The strategy is considered a short-term trade, with the potential for profit if the price of gold remains below the strike price. The risk is that if gold price rises above 3500, the trade may be invalidated, and the speaker may have to buy back the puts at a higher price.

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Strategyshort puts
Assetcommodity
ExpirationAugust
Time horizonShort-term
Entry / triggerSold puts at about 19.5-20 bucks
Target / exitProfit from the put selling strategy
Invalidation / stopIf gold price rises above 3500, the trade may be invalidated
SpeakerThe speaker
Structure / legs
  • 3500 puts
Risks
  • If gold price rises above 3500, the trade may be invalidated and the speaker may have to buy back the puts at a higher price.
shortcommodityshort/GCshort-term
high confidenceVerify in video at 46:50 ↗
Trade idea

GC Start with micro futures contracts (MGC) to reduce risk and understand the contract size and notional risk. MGC is equivalent to 100 shares of GLD, making it a more manageable size

Starting with micro futures contracts (MGC) for gold (GC) is a practical approach to understand the contract size and notional risk. By comparing MGC to the ETF GLD, traders can better grasp the risk and size of futures contracts. This approach allows traders to start with smaller positions, reducing the risk of large losses while building their knowledge and confidence in futures trading.

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StrategyStart with micro futures contracts (MGC) to reduce risk and understand the contract size and notional risk. MGC is equivalent to 100 shares of GLD, making it a more manageable size
Assetfutures
Time horizonShort-term, with the goal of building a foundation in futures trading
Entry / triggerWhen the trader is comfortable with the ETF equivalent (GLD) and the micro futures contract (MGC) size
Target / exitNot explicitly stated, but the idea is to start with small positions and gradually increase exposure
Invalidation / stopIf the trader finds the micro futures contract too small or the ETF equivalent too large, they should consider other contracts or adjust their position size
SpeakerUnknown
Risks
  • Market volatility
  • Leverage risk
  • Inadequate understanding of futures mechanics
longfutureslong/GC
high confidenceVerify in video at 53:24 ↗
Trade idea

GC Consistent premium trading

Gold (GC) is recommended as a consistent commodity to trade due to its liquidity and stable price behavior. The speaker suggests that gold offers a reliable premium and is less volatile compared to other commodities like silver or crude oil. The strategy involves identifying and maintaining positions within a stable price range, with the goal of consistent returns. The invalidation level is a significant price deviation from the established range, which would indicate a shift in market conditions.

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StrategyConsistent premium trading
Assetcommodity
Time horizonLong-term
Entry / triggerPrice range stability and consistent premium yield
Target / exitPrice range maintenance
Invalidation / stopSignificant price deviation from the range
SpeakerScott Sheridan
Risks
  • Price volatility
  • Market regime changes
  • Liquidity issues
longcommoditylong/GCLong-term
high confidenceVerify in video at 17:07 ↗
Q&A

What is the size of the micro gold contract?

The micro gold contract (MGC) is 10-oz, while the 1-oz contract is referred to as OZ. The GC (100-oz) is larger.

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Actionable takeawayMGC is 10-oz, GC is 100-oz, and OZ is 1-oz.
/GC
high confidenceVerify in video at 56:38 ↗
Q&A

What is the ETF equivalent of a gold futures contract?

The ETF equivalent of a gold futures contract (GC) is 10 contracts of the ETF GLD. This equivalence helps traders understand the notional risk and contract size of futures contracts.

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Actionable takeawayTraders should understand the ETF equivalent of futures contracts to better grasp the notional risk and contract size.
futures/GCGLD
high confidenceVerify in video at 52:18 ↗
Q&A

What commodity would be the most consistent to trade for consistent premium and price range stability?

The speaker suggests that gold (GC) and crude oil are the most consistent commodities to trade due to their liquidity and stable price behavior. These commodities are preferred over others like silver or live cattle, which are more volatile and less liquid.

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Actionable takeawayGold and crude oil are recommended for consistent premium trading due to their stable price ranges and liquidity.
CL/GCcommodity_trading
high confidenceVerify in video at 16:27 ↗