The apps I use to find great options trades is having a harder and harder time of finding something to invest in so I made the decision to hide out in gold. It’s just one small position because I’m already invested in silver, and gold miners with hedged collar strategies.
I bought 100 shares of GLD at $448, sold the $475 calls for $38.50 and bought the $450 put for $35.65 so I ended up with a net credit and can’t lose any money on this trade. The upside is about 6.5% for 10 months. I look at this like a 10 month CD paying 6.5% interest.
If GLD tanks further, I am protected with a put contract at $450 and if it goes higher, I can always roll it into the future or let it get assigned to capture the 6.5%. If GLD does nothing then it’s a safe place to hide.
There isn’t much else out there. The PPI report came in really hot today and that means the Fed likely won’t cut. If anything the Fed may have to raise rates if inflation starts to get out of control again.
I’m going to sit and wait but I wanted to make a little money today and today’s trade got me about $120.
It does look like liquidity is starting to drain from the financial system. The longer this war lasts the bigger the problems are that will come. Stay safe out there.
Share The Wealth
What are you investing in right now?