I'm not going to talk about the Fed . I already told you last week what the announcement would be and, in our Option Opportunities Portfolio over at Seeking Alpha , our outlook on the Fed combined with the activity we were observing over at the COMEX led us to go long on gold as it fell down to $1,100 in addition to the obvious futures trade idea we had in PSW's Live Member Chat Room to go long on Gold Futures (/YG). For the futures challenged, our trade idea was simply to use the Gold ETF (GLD) instead : Buying 10 of the GLD Oct $104 calls for $3.58 ($3,580) Selling 10 of the GLD Oct $108 calls for $1.39 ($1,390) That net $2,190 position pays back $4,000 if GLD is over $108 at October contract expiration (16th) but already the Futres have paid off like a gold strike as we shot up to $120 for a $664.40 PER CONTRACT gain. The margin requirement on gold futures is just $1,826 per contract, so it's a nice, efficient way to play! Meanwhile, in our OOP, GLD is already at $107.31 and the spread is at net $2,580 – up $390 so not quite as exciting as the Futures trade but that one stopped out already so we'll see which makes more next month. This stuff isn't complicated folks, we read the news and, when we think we know what's going to happen next AND we can see an opportunity to make a nice trade to take advantage of it – we go for it. Ulike Rothstein , however, we don't " bet it all " because we are constantly presented with opportunities like this and, since we understand the value of " How to Get Rich Slowly ," we are very happy to CAREFULLY work our way in and out of positions that maximize our gains while minimizing our risks. Our Option Opportunity Portfolio was originally called the 5% (Monthly) Portfolio with a goal of making 5% each month but the title tested as confusing so it was renamed. I am, however, happy to announce that, as of yesterday's close (day…
I'm not going to talk about the Fed.
I already told you last week what the announcement would be and, in our Option Opportunities Portfolio over at Seeking Alpha, our outlook on the Fed combined with the activity we were observing over at the COMEX led us to go long on gold as it fell down to $1,100 in addition to the obvious futures trade idea we had in PSW's Live Member Chat Room to go long on Gold Futures (/YG). For the futures challenged, our trade idea was simply to use the Gold ETF (GLD) instead:
- Buying 10 of the GLD Oct $104 calls for $3.58 ($3,580)
- Selling 10 of the GLD Oct $108 calls for $1.39 ($1,390)
That net $2,190 position pays back $4,000 if GLD is over $108 at October contract expiration (16th) but already the Futres have paid off like a gold strike as we shot up to $120 for a $664.40 PER CONTRACT gain. The margin requirement on gold futures is just $1,826 per contract, so it's a nice, efficient way to play! Meanwhile, in our OOP, GLD is already at $107.31 and the spread is at net $2,580 – up $390 so not quite as exciting as the Futures trade but that one stopped out already so we'll see which makes more next month.
This stuff isn't complicated folks, we read the news and, when we think we know what's going to happen next AND we can see an opportunity to make a nice trade to take advantage of it – we go for it. Ulike Rothstein, however, we don't "bet it all" because we are constantly presented with opportunities like this and, since we understand the value of "How to Get Rich Slowly," we are very happy to CAREFULLY work our way in and out of positions that maximize our gains while minimizing our risks.
Our Option Opportunity Portfolio was originally called the 5% (Monthly) Portfolio with a goal of making 5% each month but the title tested as confusing so it was renamed. I am, however, happy to announce that, as of yesterday's close (day…
