{"id":22213,"date":"2025-09-23T13:17:48","date_gmt":"2025-09-23T20:17:48","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=22213"},"modified":"2025-09-23T13:17:48","modified_gmt":"2025-09-23T20:17:48","slug":"gold-shutdown","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/gold-shutdown\/","title":{"rendered":"Gold continues its Breakout Amid Potential Gov. Shutdown, December Bean Oil, Hedging Strategies, Levels, Reports – The Important Must-Knows for Trading Futures on September 24th, 2025"},"content":{"rendered":"\n\n\n
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Movers and Shakers:\u00a0Gold Breakout Meets Shutdown Risk: Hedging Strategies Explained<\/h1>\n

By John Thorpe, Senior Broker<\/em><\/h3>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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\"gold\"<\/p>\n

The U.S Governments\u2019 fiscal year concludes at the end of the third quarter. Expect more volatility as we wait to see how traders bet on whether or not Congress can pass appropriations bills to keep the U.S. Government open for business.\u00a0The Government, in the past, shut down most recently in 2018. Prior to that? 2013, 1995 and 1994.\u00a0Gold prices rallied during the shutdowns in the past. But what if there is no shutdown?<\/p>\n

Gold has been on the move since we had a breakup! (breakout to the upside) from the 5-month rangebound trade, ($3200-$3500) basis the December gold contract. Since September 2nd<\/sup>, gold has rallied in 3 weeks over $300 per troy oz. to $3810.00, if your crystal ball had you long Gold and you want to protect your current gains, what follows are a few Ideas you can implement using futures options. Consult with your Cannon Trading broker (800 454 9572 or 310 859 9572) for clarity.<\/p>\n

Calculate the\u00a0size you will be hedging: Calculate the number of contracts as (Portfolio Value \/ Gold Price \u00d7 100 oz)). For a $760,000 long position at $3,800\/oz, use ~2 contracts.<\/p>\n

Strategy 1: Protective Put (Straightforward Downside Insurance)<\/h3>\n

Buy put options on gold futures to gain if gold prices fall, offsetting losses in your long position. This is ideal for strong bullish views but with short-term downside concerns.<\/p>\n

Steps to Implement:<\/h3>\n
    \n
  1. Assess Exposure: Determine your long position’s value.<\/li>\n
  2. Choose Strike and Expiration: Out-of-the-money (OTM) puts (e.g., 5-10% below current price, like $3,600 strike at $3,800 spot) for cheaper premiums; at-the-money (ATM) for fuller protection. Use 1-3 month expirations for flexibility.<\/li>\n
  3. Execute: Buy puts via a futures-approved broker (e.g., Cannon Trading). Premium: ~1-5% of notional (e.g., $500-$2,000 per contract at 20% implied vol).<\/li>\n<\/ol>\n

    Example:<\/p>\n

      \n
    • Gold at $3,800; buy $3,600 put expiring in 2 months for $150\/oz premium ($15,000\/contract).<\/li>\n
    • If gold drops to $3,400: Put worth ~$200\/oz (intrinsic value), hedging $20,000 loss per contract in your long position.<\/li>\n
    • If gold rises: Lose only the premium, but keep gains.<\/li>\n<\/ul>\n

      Pros: Retains unlimited upside; simple.\u00a0Cons: Premium decays over time (theta); costly in low-vol environments.<\/p>\n

      Strategy 2: Collar (Low-Cost or Zero-Cost Hedge)<\/h3>\n

      Buy a protective put and sell an OTM call to finance it. This caps upside but provides free\/cheap downside protection\u2014suitable for neutral to mildly bullish outlooks in volatile markets.<\/p>\n

      Steps to Implement:<\/p>\n

        \n
      1. Buy Put: OTM (e.g., $3,600 strike).<\/li>\n
      2. Sell Call: OTM above spot (e.g., $4,000 strike) with same expiration.<\/li>\n
      3. Match Sizing: Same number of contracts as your exposure.<\/li>\n
      4. Execute: Net premium near zero if call income matches put cost (adjust strikes for balance).<\/li>\n<\/ol>\n

        Example:<\/p>\n

          \n
        • Buy $3,600 put ($150\/oz premium); sell $4,000 call (collect $150\/oz).<\/li>\n
        • Net cost: $0.<\/li>\n
        • Protection below $3,600; upside capped at $4,000 (may need to close if called away)\u00a0Pros: Minimizes upfront cost; effective in sideways markets.\u00a0Cons: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Limits gains; potential assignment on calls.<\/li>\n<\/ul>\n

          Strategy 3: Bear Put Spread (Defined-Risk, Lower-Cost Protection)<\/h3>\n

          Buy a higher-strike put and sell a lower-strike put for partial hedge at reduced cost. Best for moderate downside expectations without full insurance.<\/p>\n

          Steps to Implement:<\/p>\n

            \n
          1. Select Strikes: Buy ATM\/OTM put (e.g., $3,800); sell further OTM (e.g., $3,400).<\/li>\n
          2. Expiration: 1-6 months.<\/li>\n
          3. Contracts: Match exposure.<\/li>\n
          4. Execute: Net debit = Long put cost minus short put premium (e.g., $200\/oz debit = $20,000\/contract).<\/li>\n<\/ol>\n

            Example:<\/p>\n

              \n
            • Buy $3,800 put ($250\/oz); sell $3,400 put (collect $50\/oz). Net: $200\/oz.<\/li>\n
            • Max hedge benefit: $400\/oz spread minus debit ($200\/oz profit if gold < $3,400).<\/li>\n
            • Limited protection to spread width.<\/li>\n
            • Pros: Cheaper than naked puts; caps max loss. Cons: No protection below short strike; less flexible.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n

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December Bean Oil<\/h3>\n

December soybean oil completed the first downside PriceCount objective to the 49 area where we are getting a reaction in the form of a potential spike reversal trade. At the point, if the chart can resume its break with the new sustained lows, the second count would project a possible slide in the 47 area.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an \u2018exact\u2019 science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. <\/em><\/p>\n

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com<\/em><\/p>\n

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. <\/em><\/p>\n

Past performance of actual trades or strategies is not necessarily indicative of future results.<\/em><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Daily Levels for Sept. 24th, 2025<\/h3>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Want to feature our updated trading levels on your website?\u00a0Simply paste a small code, and they’ll update automatically every day!\u00a0<\/em><\/h3>\n

Click here for quick and easy instructions<\/a>.<\/em><\/h3>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Economic Reports<\/h3>\n

provided by:\u00a0<\/a>ForexFactory.com<\/a><\/p>\n

All times are Eastern Time ( New York)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Find us on Trustpilot<\/h1>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.\u00a0You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.<\/em><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
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Cannon Trading Co., Inc.<\/span><\/em><\/p>\n

12100 Wilshire Blvd.<\/span><\/em><\/p>\n

Suite 1640<\/span><\/em><\/p>\n

Los Angeles, CA 90025 US<\/span><\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Movers and Shakers:\u00a0Gold Breakout Meets Shutdown Risk: Hedging Strategies Explained By John Thorpe, Senior Broker The U.S Governments\u2019 fiscal year concludes at the end of the third quarter. Expect more volatility as we wait to see how traders bet on whether or not Congress can pass appropriations bills to keep the U.S. Government open for […]<\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1434,231,76,67,70,30,3,61,358,1334,238,235,233,234],"tags":[16,36,1525,1879],"class_list":["post-22213","post","type-post","status-publish","format-standard","hentry","category-charts-indicators","category-commodity-brokers-2","category-commodity-trading-2","category-future-trading-news","category-future-trading-platform","category-futures-broker-2","category-futures-exchange","category-futures-trading-2","category-futures-trading-education","category-gold-futures","category-grain-futures","category-index-futures","category-options-trading-2","category-trading-guide","tag-futures-trading","tag-gold","tag-hedging","tag-shutdown"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/22213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=22213"}],"version-history":[{"count":1,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/22213\/revisions"}],"predecessor-version":[{"id":22214,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/22213\/revisions\/22214"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=22213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=22213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=22213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}