Options For Silver And Gold As They Start Their Next Leg Down

Thu, 03/22/2012 - 04:36 EDT - Seeking Alpha

By Scott Gibson:Although most gold bugs and precious metal aficionados are dyed in the wool buy and holders, I would suggest a more profitable alternative. Silver and gold have turned into great intermediate term trading vehicles over the past 12 months. If you have long term positions in either silver or gold, using the Exchange Traded Funds SLV or GLD, that you do not want to sell, you may want to use the following insights to sell covered calls against your positions or hedge your long term holding with inverse funds like GLL for gold or ZSL for silver during down trends. You can also supercharge the returns on your long term holdings by selling covered put options at the end of downtrends on either silver or gold with the anticipation that SLV or GLD will close above your strike price by options expiration. This allows you to collect the option premiumComplete Story »

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Options For Silver And Gold As They Start Their Next Leg Down

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