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Philip Morris International, Inc. Message Board

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  • axpkocop axpkocop Mar 17, 2009 11:38 AM Flag

    Spectacular Close for PM - GOLD

    Thank you for the idea.

    I sold the June 80 puts that forces me to buy the ETF if it drops to 80 and I sold the June 111 calls that forces me to sell it at that price.

    I'm willing to buy gold at 800 and sell it at 1110 through June. As the options approach expiration I'll sell a later month like the September or December contracts. Just selling call options 20% above the market that expire every 3 months, I'll earn about 10% per year based on today's option prices. That doesn't include the put premiums but they should only be sold if you're willing to buy more gold.

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    • nice trade but do you own the etf? If not, that call could be a problem in the event of an diplomatic problem (Iran, or North Korea).

      You are right to get your holdings working for you - sleeping stocks are not the way to go.

      • 1 Reply to BillyFitzgerald
      • No, I don't own the GLD ETF. I own the raw metal-gold and silver. Why pay management fees to have someone buy and hold gold for me?

        My ETF naked call options sold are indirectly covered by the gold I own but I use stock like Berkshire, PM and COP to cover the margin requirements.

        I still haven't sold any call options against a silver ETF but I may if the price goes a little higher.

 
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