Covered Call Options on PM ETF's

[chux03]

from an email I received earlier today:

You can buy gold in the stock market through the gold ETF (GLD). The managers of this fund buy gold, store it in a vault, and then issue 10 shares for every ounce they hold. Therefore, each share of GLD is worth one-tenth of an ounce of gold. The silver ETF (NYSE: SLV) works the same way, except each share of SLV represents one ounce of silver.

By writing covered call options on the gold and silver ETFs, you can generate considerable income from your gold and silver holdings.

So this week, we're going to capture an option premium on silver. First, you must take a position in the silver ETF. Buy at least 100 shares of SLV. Then, you should sell one call option contract for every 100 shares of SLV you own. Sell the SLV April $14 calls (SLVDN).

SLV's April $14 call expires at close of trading on Friday, April 17. On the following Monday, sell your SLV stock and move on to the next capture. I'll remind you to do this in my weekly update.

As I write, the SLV April $14 calls sell for $0.65. Earning $0.65 for holding silver for 38 days is equivalent to 47% in annual income.

I'll use today's closing prices as the reference prices for our portfolio.


Anyone ever hear of or do this??

[blox87]

from an email I received earlier today:

You can buy gold in the stock market through the gold ETF (GLD). The managers of this fund buy gold, store it in a vault, and then issue 10 shares for every ounce they hold. Therefore, each share of GLD is worth one-tenth of an ounce of gold. The silver ETF (NYSE: SLV) works the same way, except each share of SLV represents one ounce of silver.

By writing covered call options on the gold and silver ETFs, you can generate considerable income from your gold and silver holdings.

So this week, we're going to capture an option premium on silver. First, you must take a position in the silver ETF. Buy at least 100 shares of SLV. Then, you should sell one call option contract for every 100 shares of SLV you own. Sell the SLV April $14 calls (SLVDN).

SLV's April $14 call expires at close of trading on Friday, April 17. On the following Monday, sell your SLV stock and move on to the next capture. I'll remind you to do this in my weekly update.

As I write, the SLV April $14 calls sell for $0.65. Earning $0.65 for holding silver for 38 days is equivalent to 47% in annual income.

I'll use today's closing prices as the reference prices for our portfolio.


Anyone ever hear of or do this??

Nope, never tried it. I just got approved on my etrade account to trade call options and would like to learn and implement this strategy as I've heard the payoffs can be very rewarding.:D

[chux03]

Are you going to try that on your own or do you subscribe to a newsletter that trades like that?? I just received an email yesterday that basically was bragging about their results so far, though I don't know much else about that....investing style. I subscribe to one of their other publications. It sounds interesting in that it's fairly fast paced and overall, they make money, though it would not qualify obviously as an "investment". Other than buying PM stocks more than I sell, that's about as "far out" as I get though if something is worked out in my mind, in that I understand it completely, I may sometime be more likely to try a particular strategy than something that's the opposite of that. Risk & strategy that I can comprehend, is I guess what I'm trying to say....

Anyway, good luck!!

[blox87]

I've watched quite a few videos on youtube about options and how they offer a leveraged position for either upswings or downswings in a particular stock. Also they can act as a hedge/insurance or reduce risk if for example i buy 100 shares of slv at 14 dollars I would buy a put option with the strike price of 13 dollars to reduce downside risk. Its like buying insurance in blackjack if there is an Ace on the table in the dealers hand. If SLV goes to 13 you'll make some money on the option but lose money with your actual stock holding.Youll make some money back. I would still like to learn more about it before I throw my money out there though haha:rolleyes:

[chux03]

Here, check these guys out:

www.stansberryresearch.com/pub/mrs/

[chux03]

I got to peek at one of my friends newsletters today and they laid out the same strategy only for www.royalgold.com. Buy 100 shares and then sell one April 09 $40 call (MJQDH) for $2.25. He gave me a copy and I'm...."checking this out" as they have this explained and tell you step by step what to buy and do. I understand it and I see how it pays off. I understand how it can pay off even if the shares stay sideways. My only question would be by what date do you have to pull the trigger for the April $40 call? I know you can buy the shares anytime and the option expires on April 17th. The shares are a BUY under $40 and it looks like another down day Wednesday so my guess is that shares will be $38 something, so as long as you can still sell the call (MJQDH) this is a good trade.
Anyway, I'll do more....studying and let you know what I do....

[chux03]

www.royalgold.com finishes UP the day BIG and closes at $42.21. So it looks like the April $40 calls are called away, so their stated profits on that trade are 11% for the month PLUS you still own those shares that just went up almost $4 each today. CONGRATS!!!! :)

[infomofeepino]

I am amazed

_________________
new car buyer’s guide can help you
Opel Speedster (http://www.ramunelis.com)

[chux03]

I see Royal Gold is back near $38 a share. Could be time to buy....

[jessjane]

from an email I received earlier today:

You can buy gold in the stock market through the gold ETF (GLD). The managers of this fund buy gold, store it in a vault, and then issue 10 shares for every ounce they hold. Therefore, each share of GLD is worth one-tenth of an ounce of gold. The silver ETF (NYSE: SLV) works the same way, except each share of SLV represents one ounce of silver.

By writing covered call options on the gold and silver ETFs, you can generate considerable income from your gold and silver holdings.

So this week, we're going to capture an option premium on silver. First, you must take a position in the silver ETF. Buy at least 100 shares of SLV. Then, you should sell one call option contract for every 100 shares of SLV you own. Sell the SLV April $14 calls (SLVDN).

SLV's April $14 call expires at close of trading on Friday, April 17. On the following Monday, sell your SLV stock and move on to the next capture. I'll remind you to do this in my weekly update.

As I write, the SLV April $14 calls sell for $0.65. Earning $0.65 for holding silver for 38 days is equivalent to 47% in annual income.

I'll use today's closing prices as the reference prices for our portfolio.


Anyone ever hear of or do this??

I think this is fraud. Because i hear many time these type of frauds. My one close friend also lose some of his money with this type of fraudulent emails. Best way if you use paypal for online money transfer. They guaranteed if any fraud will held they will restore your money.