A bunch of gold mining stocks (ETF). I bought it at $19.99 (200 shares), then did a covered call for the $21. July 2020. I got $2.50= $500. minus about a dollar commission. If inflation goes crazy or the government falls apart, it may be a smart move. It even has a yield of 9/10 of 1%...Better than a money market fund!! Wait and see. Just me...
I bought RING on Monday...Did a covered call.
- Thread starter Cabin111
- Start date
So you spent $4K to own the ETF long, and collected 500 bux by selling 2 calls at $21?
That is correct...What do you do if you have a lot of money on the sidelines?? Buy a CD...Money market fund? Buy QQQ?...I already own some Walmart. Safe (I believe) and boring in an uncertain world...
Interesting thoughts from folks all around .... gold mining is a very interesting trade right now... I have a theory that as gold prices rise (and rise they have as you May or may not know) more minors will mine for gold, and in order to mine you must “dig deep” as the saying goes so will they dig deep enough to unlock oil reserves? This is something I am reasearching (and don’t have my work completed yet but I am very confident in the idea)... enough digging for gold and that will create more oil. And that willl create more oil so tht the oil prices “recover” ... folks let me know what you think but I’d say this one is spot on?
This isn't a video game where gold veins lie right next to oil deposits. Pick any miner and you should be able to pull geological surveys of land they own...you'll have a hard time finding any with oil on them.
I look at it this way. Either it gets called away (and I've made a solid profit) or in July my entry point is under $17.50 where I can write another option.
$19.99-$2.50= 17.49 I pay no taxes (I have my ways).
Who here thinks the government is done printing money?? For me this looks safer than bonds...
Last edited:
You don't know what you are missing! I don't mean @PoopyDeek, I mean options.Ahh, I see this was moved to options. I only asked because it was in trading section originally. I never tip my toes into the options section, ever since PoopyDeek ignored me.
Carry on.
Thanks vergmetic however I think your missing the bigger picture here... consider how many minors there will be (in fact in the 1800s there was even a “gold rush” where everyone and there parents were gold minors and my research says that we are headed that direction) and if everyone is a minor than then certainly they will find oil (how else do they find oil these days? It is certainly minors though I could be wrong)... so my research suggests as the number of minors increase then perhaps we should find more oil... I maybe wrong folks but I Doubt it, let’s discuss ... thanks, Krent