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<p>[QUOTE=&quot;Merkur, post: 3645951, member: 106019&quot;]Yes, I was exactly referring to the Bid/Ask spread.</p><p>If it is so low for you, thats great.</p><p>For me currently the lowest spread for one ounce in Germany is online atleast 8€ when looking at different dealers and around 20-25 with the same dealer per ounce. At my local dealer it is even higher.</p><p>So for me easily it is 80-250 € for 10 ounces. Without packaging cost.</p><p><br /></p><p>[USER=77639]@calcol[/USER] correct, but the gold you own at home is now also 16k worth (given current prices) If you are missing Collateral, then you might be forced to sell your physical gold. </p><p><br /></p><p>There is also always a worst case:</p><p><br /></p><p>Lets say you sell a Call at 1500 for 330$</p><p>Price goes up to 1600</p><p>Now you sell a second Call for 330$</p><p>Price drops down to 1500</p><p><br /></p><p>You loose in the End -1000$+330$+330$= -340$ on your options broker account.</p><p>Your Gold is now still worth 1500$ per ounce in total.</p><p><br /></p><p>So you loose 340$ an your total gold.</p><p>If you want to eliminate all further risk, you can sell at 1600$ your physical gold at the dealer, take your haircut and be happy about the 330$ profit you made with your option. Pays for the Spread and a Night out.</p><p><br /></p><p>You can try to increase your upside potential with choosing a strike price of 1550$ for Example, Instead of 1500$.</p><p><br /></p><p>This would only net you 150$ Premium, but when the Price goes to 1600 you make 150$+(10x50$) = 650$ in total.</p><p><br /></p><p>But there is still risk involved, there is no free lunch when dealing with the market.[/QUOTE]</p><p><br /></p>

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