Macro Voices

Hedged Long Gold Position via Option Risk Reversal

+6.38%current return

"Now if paying about $16 an ounce for peace of mind over the remainder of the year makes sense to you, this certainly is a structure worth considering."

The trade call lays out an options-based hedge for an existing long gold position of approximately 100 troy ounces (roughly $390,000 at current levels). The strategy involves buying a $3,800 put, selling a $3,600 put to offset part of the cost, and financing this hedge by selling a $4,300 call. This structure protects against an 8% downside correction (about $300 per ounce move) while capping upside gains at around 10% above current levels, with a net premium cost of about $16 per ounce.

Tactical Increase in Copper Exposure via Futures (HGZ6)

"I told you guys a couple of times in the last few weeks that I would be tempted to add to my long copper position. And guess what? Listening to the last couple of episodes and our expert guests\' opinions really confirmed that long copper view persuaded me to add considerable size this week to my long HGZ6. I increased my futures position on copper by 50% just hours before Freeport-McMoran declared force majeure following a serious mine accident."

In this actionable trade insight, the speaker reveals he increased his copper futures position (ticker HGZ6) by 50%. The move comes on the back of strong long-term bullish sentiment for copper, supported by technical rebalancing gains and market signals. Despite recent supply disruptions, the decision reflects a tactical rebalancing strategy aimed at capitalizing on further upward momentum in copper prices.

Bullish Chinese Equities Backed by Government Intervention

"I think the Chinese equity bull market started in earnest in January 24. That's when the government stepped in to put a floor under the market. As stocks fall, high dividend yielders like PetroChina, China Mobile and Bank of China attract buying, reinforcing the momentum. With strong government backing and attractive dividend differentials versus cash yields, the market remains buoyant."

Louis Vincent Gav highlights that the Chinese equity market is experiencing a robust bull phase, beginning when the government actively intervened to stabilize prices. The commentary emphasizes high dividend yields and ongoing policy support as key catalysts, suggesting that Chinese equities offer attractive long-term prospects despite broader market uncertainties.

Long December 2025 Copper Future with Protective Put Spread

"Trade A is long the December 2025 copper future. This is paired with a protective November 4.5 to 4.25 bear put spread. This structure gives you unlimited upside in the reflation catch-up while materially softening the drawdown risk into November if the timing of the entry is proven early."

This trade call details a bullish position on high-grade copper in the context of a reflationary environment. The recommendation is to go long on December 2025 copper futures, hedged by a protective bear put spread set between 4.5 and 4.25, which aims to cap downside risk while preserving significant upside potential.

Sell Short-Dated Put Options on Crude Oil Futures for Income

+0.23%current return

"For me, this is a perfect candidate for income writing on the futures. I am attracted to selling puts further out into the end of the year where my break-even would be closer to the year-to-date lows near the $55 to $57 range. On page 4 of the Trade of the Week download, the $57 strike on the January 2026 crude oil futures chart is highlighted. At the time of recording, the 96-day put is bidding around $1.82, which translates to an annualized return of roughly 12% for an unleveraged, cash-secured put. For retail investors, ETFs like the United States Oil Fund (USO) can be used if they prefer not to use futures."

The trade call recommends selling short-dated put options on crude oil futures with a strike price of approximately $57, as a means to generate income while limiting downside exposure. The strategy capitalizes on the current fair value zone (between $60 and $70) and is supported by quantitative details such as a premium of about $1.82, yielding an annualized return near 12%. The suggestion includes a retail alternative using the USO ETF.

Bond Steepener Trade Using TLT and Short-Term Treasury ETF

+4.76%current return

"For example, you can use Harley-Bassman's Simplify Short-Term Treasury Futures ETF and pair that with options on the TLT, which is the iShares 20-plus-year Treasury Bond ETF. It lines up with a 4-to-1 ratio to balance duration between the 30-year and 5-year, backing Jim Bianco's view that rate cuts could paradoxically push long-term yields higher."

Patrick Ceresna outlines a trade that profits from a steepening yield curve based on the view that rate cuts, while intended to lower yields, may instead increase long-term yields in a higher inflation environment. The trade involves taking a position using options on TLT alongside a position in a short-term treasury futures ETF. Quantitative details include a current yield spread of approximately 121 basis points and a necessary duration balance of roughly 4:1, suggesting a tactical, tradeable setup for public market investors.