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Never selling your physical Gold , Hedging it instead
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<p>[QUOTE="Merkur, post: 3646638, member: 106019"]Yes you are correct.</p><p>Maybe the title is somewhat misleading. Still selling calls on Spot Gold is a very valuable strategy while being aware of the risk involved with options in general.</p><p>The examples we are talking about are quite high moves in price. There is always the opportunity to increase the days in your call, collecting even more premium and giving the gold-price a bit longer to comes down, that you are not forced to sell said gold.</p><p>In the End it is a good way to make money in particular when gold goes down.</p><p>You hedge yourself in a limited way.</p><p><br /></p><p>The Norm is that one nearly never gets assigned a option, I usually sell the option to the market for some bucks before it expires, or roll it out to the next month.</p><p><br /></p><p>With this example based on real data, lets just see how it goes. If necessary to adjust the position, I will give an update on it.</p><p><br /></p><p>For Transparency: The Call is a GLD 20 Sept 2019 141$ Call with a 330$ Premium.[/QUOTE]</p><p><br /></p>
[QUOTE="Merkur, post: 3646638, member: 106019"]Yes you are correct. Maybe the title is somewhat misleading. Still selling calls on Spot Gold is a very valuable strategy while being aware of the risk involved with options in general. The examples we are talking about are quite high moves in price. There is always the opportunity to increase the days in your call, collecting even more premium and giving the gold-price a bit longer to comes down, that you are not forced to sell said gold. In the End it is a good way to make money in particular when gold goes down. You hedge yourself in a limited way. The Norm is that one nearly never gets assigned a option, I usually sell the option to the market for some bucks before it expires, or roll it out to the next month. With this example based on real data, lets just see how it goes. If necessary to adjust the position, I will give an update on it. For Transparency: The Call is a GLD 20 Sept 2019 141$ Call with a 330$ Premium.[/QUOTE]
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Never selling your physical Gold , Hedging it instead
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