Posted by fixdgear on 18th of Dec 2010 at 10:34 am
you could also sell naked calls...what i like about this is if
in case the GDX sits here for a period of time before it
moves time erodes the calls and expire worthless and u get to keep
the premium...if i had done that with PGN for example.i would be up
alot more than just buying the puts and watching the stock range
bound trade..and watch the time errosion on the puts..
Depending on your margin on your account.. you might still want
to buy a way out of the money long to hedge your
short... You never know if there will be a huge spike in GOld due
to event beyond our control and our peace through weekness ideology
in DC under our present admin.
you could also sell naked
BPGDM and GDX swing system
Posted by fixdgear on 18th of Dec 2010 at 10:34 am
you could also sell naked calls...what i like about this is if in case the GDX sits here for a period of time before it moves time erodes the calls and expire worthless and u get to keep the premium...if i had done that with PGN for example.i would be up alot more than just buying the puts and watching the stock range bound trade..and watch the time errosion on the puts..
naked
Posted by zach06 on 20th of Dec 2010 at 08:26 am
Depending on your margin on your account.. you might still want to buy a way out of the money long to hedge your short... You never know if there will be a huge spike in GOld due to event beyond our control and our peace through weekness ideology in DC under our present admin.
naked is, well, naked.... Spreads can
Posted by steveo on 20th of Dec 2010 at 12:49 am
naked is, well, naked....
Spreads can greatly mitigate the risk.