Platinum versus Paladium – Strategy Update

30 April 2021

Original strategy initiated on 26 April 2021.

Long Platinum versus Palladium Option Strategy

1.  Sell Palladium September 2021 (expires 18 August 2021) Put Option, strike 2,680. Settlement price on 30 April 2021 = 122.80. Delta = 25; Vega = 5.15; Theta = +0.67;  Implied Volality = 37.84%.

Futures reference = 2,981.50

2.  Buy Platinum January 2022 (expires 15 December 2021) Call Option, strike 1320.  Settlement price on 30 April 2021 = 79.30.  Delta =  41; Vega = 3.72; Theta = -0.25; Implied Volatility = 32.29%.

Futures reference = 1,227.00

Net premium to close trade = 43.50

Net premium at strategy inception = received 72.00

Net gain of 28.50 (USD 285 per 1 lot of option strategy entered)