Yesterday I bought 1000 Shares of Barrick Gold Corp (GOLD). A few minutes ago I bought 1000 shares Veneck Vectors Gold Miners ETF (GDX). This is an Exchange Traded Fund. Along with buying this ETF I also sold a 10 contract Call.
With all the stimulus going on, and the dollar losing value, I decided to jump into the gold market. With the crazy run the stocks are on I feel gold will be a less risky trade right now. Today’s purchase I included selling a Call; yesterday’s trade with Barrick Gold Corp I still didn’t sell a Call. I might soon, but I want to see if I get a little gain in the stock before I do. As I write Barrick is up 77¢.
Veneck Vectors Gold Miners ETF (GDX) is a fund that is comprised mainly of publicly traded companies involved in the mining for gold and silver. At this time I’m a fan of the mining companies.
Buy 1000 Shares GDX @ $45.22
Sell to Open 10 GDX 8/7/20 $46.00 C @ 50¢ (+$500)
I’m thinking of selling a 10 contract Call on my 1000 Barrick Gold Corp (GOLD) shares. I bought the stock at $29.55. I’m looking at the $31.50 Calls for a premium of 20¢. I could get a better premium with a lower Strike Price but I’m gonna try to not get assigned. I’d like to keep this stock for a little while. However, being a trader, I love bringing in premiums.
Successful trading,
Steve
The Options Coach