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Diary of a WTI options market maker

GL

Entry posted by Gary LeBlanc ·

185,987 views

I have been a trader since 1980. I started trading options in late 1983. I lost every penny of a $1.6 million portfolio in the crash of October 1987. What doesn't kill you makes you stronger. I have a undergraduate degree in Finance. I have a Masters degree in Economics. I have completed about half the requirements of a PhD in Financial Economics. I don't advise pursuing a PhD unless you want to be a teacher. It will not make you a better investor/trader. I developed a trading strategy involving shorting calls against GUSH in 2015 that I managed for a trucking firm to alleviate the strains of high fuel prices. Early in 2019 the owner of the trucking company sold the company and devoted his time to managing just the strategy itself. He said that he expects to make more profit in 2020 from writing calls against GUSH and writing puts and calls against his WTI contracts than his 32-truck transportation company ever did...all from his home...in his pajamas.

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OilProspector

Well it is now complete. We all know that it was much worse than the final tally (remember when CL went (-$40) a barrel!)... Margin call anyone!?
There is a lesson to be learned here... that there is no free lunch (Holy Grail) and Gary thought he found it. Wrong. Destroyed. Hubris gets another.

Gary LeBlanc Portfolio: CLN20 expiration on 06/22/20 (July Series complete).

Screen Shot 2020-06-23 at 12.49.23 PM.jpg

Edited by OilProspector

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rw

Been away a while!

Late yesterday, anticipating an increased spread sometime soon.

Long 10 Brent Dec 21@75.57

Short 10 CL Dec 21@73.85

Fingers crossed 🤞

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rw

Sold to close 10 Brent Dec 21 @71.51 (ave)

Long to close 10 CL Dec 21 @68.33 (ave)

I still think the spread could widen before expiry, but I'm looking at another good opportunity

Regards all

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