yes miners are a better way to trade bigger sums of $$ as yo have a bit of diversity. For example i sold all of my NUGT and AGQ
but i still wanted to profit if gold runs so i bought KGC calls..
they are primary gold but also have some others they mine..
Good stuff X.Thanks I am not deep into NUGT. I AM deep into PHYS which is similar to GLD, but as a closed end fund it can control the number of shares outstanding. On a daily % basis, GLD and PHYS track pretty closely. Gold is running again today,as you know.PMs are a big part of my risk funds...I am in the miners, mainly through GDX, GDXJ and SLV, but with several individual miners as well. Good luck with your trades!
if you are new to 3x funds they are not meant for long term holdings, decay will mess that up.
I would sell shorter term leanth calls on this one.
GLD is your big boy that you can go long term on.
NUGT and all 3x funds are gambling and nothing else really,
but boy are they fun.
i trade nearly all the 3x funds but i use a really small amount of $$
for example if i want to trader the banks then FAS i would put like no more than 5% vs i would have no problem putting in 30% in XLF..
honestly you can never go wrong with covered calls. I think its one of the best way to trade as long as you are not greedy as you know. If i were super rich i would just live off the premiums of covered calls.
So to answer your question i feel that selling covered calls is great idea, for me i tend to hold my stuff for short periods of time, not daytrader like but more like trader, i buy, if it makes me $$ i sell and move on rather it be in a few hours a few days or a few weeks.
Selling covered calls with a short time frame is very hard. In order to really use it you have to let it expire and the longer you sell the calls out the more $$ you make. A great way is like at&t that yeilds a 6% div, you buy shares of T sell covered calls that are like 3-12 months out and forget about it. then you make money three ways,
2)high premiums on the calls
3)stock rises in price
if you are more of a short term player then selling puts works well but that takes up more capital..
hope that helps you out a little
Xtrader....Your posts make sense. I am underwater on NUGT, but I believe gold and gold stocks, and hence NUGT, will soar big time (Who knows when?)....SO.... I have sold covered calls...June 30.98s (an odd # to say the least)...against part of my position. If NUGT rises to 31 by June my stock will be taken, of course. If not, I keep the premium on the calls and keep my stock. At 30.98 I will break even. I am thinking about selling calls against the rest of my NUGT position.
What is your opinion of this strategy?...Thanks in advance.
wow sorry for the late reply i was kinda busy:)
to answer your question i sold my NUGT and My AGQ before the weekend i did not sell it because of the weekend i sold it becuase i made up everything i lost and then a couple hundred, and i am not sure gold has much more room to run right now, but i have held onto my KGC options and they are doing very very nicely i have then till 2013 jan so i am no rush and they hardly cost me anything so if gold goes up more then i will make $$ if it goes down no biggie and i will purchase more NUGT and AGQ. my trading range for NUGT is over 25 = sell under 22 is buy. Currently the RSI for NUGT is 68 and that is on the high side, the RSI for AGQ is 71 and the RSI for KGC is 50
so NUGT and AGQ are a bit overpriced right now and KGC is ok.
Looking at SLV as well RSI is 74
so let those numbers speak for their selves.
I still have TVIX and a very small positon in VXX calls, those 2 are not doing that well and thats ok, i wont add anymore though to TVIX and i might add a Very small postion to VXX calls. Sold my FAZ for a quick couple hundred dollars profit.
but my BAC purchase i made at 5.39 and my LCC purchase i made at 5.40 are treating me really good:) Thanks AMR
last year my account was in a paper loss of about 20% now its only 5%, as always what happens in europe will effect us but no matter how much BS they talk they really cant and wont let Europe fail. its just a game of chess but having them fail will cause such chaos that it would be horrible.
In the long run the DOW is heading up i feel, it has had a hard time trying to break 12000 and our own economy is not doing that bad now, the worst is most likely over and now its just a recovery. I am sure my TVIX and VXX are going to go in the dumps but since my posion is so small i will let it go down and once they level off i will add a bit to it to dollar cost down.
On the good side is since my account is more 60% long 15% short and 15% cash if the TVIX does go lower that means my long holding will go higher and over ride that loss so really there is no loss if you look at it that way and that is how you have to trade. Not look at one holding and base your trading around that, you have to look at the overall picture and let that work for you. With trading you will never have 100% all profit on every postion if you are diversified. Its just making sure the +++ out weigh the ---- if you are long and the --- out weigh the ++++ if you are short