Even though I’m in Asia, it doesn’t mean I’m not trying to make money. Gold continues to go to the moon and it’s a great time to profit from all the momentum and speculation. I’ve written about my first gold collar on GLD here and so far so good, it’s risk free money.
I also have gold miners in my portfolio and the run up has been delicious but I am also cautious so I’m looking at collaring my gold miner, GDXJ to lock in profits and minimize/eliminate losses.
Here’s what a potential trade looks like, I actually tried to enter into this trade late last night Asia time but my trade didn’t go through when I checked this morning.
You can find this calculator over at www.optionsprofitcalculator.com
Note that I already own GDXJ at a lower price than $100 so the numbers below will be a little different for you than me in that I won’t have any losses because my entry point on GDXJ is below $95. The graph matrix below shows that if I can sell the $115 calls for September 2026, I can bank 14.44% – when I ran these numbers yesterday they were higher at 22% but GDXJ has been volatile and because I’m on the other side of the world, it’s hard to manage trades unless I am up all night. Of course, the 14% return is only valid if gold and gold miners continue to climb higher but selling the calls and buying the puts insures that no money is lost and money can be gained.
I will try the trade later tonight and see if it goes through and follow up accordingly.