Gold (and Oil) Selling Off-good opportunity to do buy writes
The Gold and Oil Markets are coming in a bit and this is representing some good buy write opportunities because of high volatilites in their options.
GDX and OIH are my proxies for Gold and Oil respectively. Buy writes on near terms are giving excelled returns and are a great way to ease into the market.
If it sells off more you need to be able to buy more of these ETFs for the strategy to work.
Gold and Oil remain in secular bull markets-pullbacks are buying opportunities. Given the massive run up in these stocks the last couple of years, a 1-2 year consolidation is in order---this is what my philosophy of buy-write is based on.
Sanjay John G.
Check out some Hot Deals at www.latesthotdeals.com
GDX and OIH are my proxies for Gold and Oil respectively. Buy writes on near terms are giving excelled returns and are a great way to ease into the market.
If it sells off more you need to be able to buy more of these ETFs for the strategy to work.
Gold and Oil remain in secular bull markets-pullbacks are buying opportunities. Given the massive run up in these stocks the last couple of years, a 1-2 year consolidation is in order---this is what my philosophy of buy-write is based on.
Sanjay John G.
Check out some Hot Deals at www.latesthotdeals.com
2 Comments:
Why not buy PEO trading at a 12% discount to NAV ? Closed end funds like ASA and PEO when trading at big discounts seem like the best idea if one wants exposure to these sectors. I do agree writing calls is generally a good idea.
Why not buy PEO trading at a 12% discount to NAV ? Closed end funds like ASA and PEO when trading at large discounts seem like the best idea if you want exposure to these sectors. I do agree writing calls is generally a good idea.
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