Today I continued a GDX Gold Miner's ETF investment in a traditional IRA as follows:
10/25/2011 10:37:57 Bought 100 GDX @ 56.7268 -5,682.67
10/25/2011 10:38:30 Sold 1 GDX Oct 28 2011 56.0 Call @ 1.52 141.23
10/27/2011 10:52:44 Bought 1 GDX Oct 28 2011 56.0 Call @ 3 -310.76
10/27/2011 10:53:06 Sold 1 GDX Nov 19 2011 56.0 Call @ 4.1 399.23
11/10/2011 10:11:02 Bought 1 GDX Nov 19 2011 56.0 Call @ 4.6 -470.76
11/10/2011 10:12:04 Sold 1 GDX Dec 17 2011 56.0 Call @ 5.75 564.22
12/19/2011 10:15:55 Sold 1 GDX Feb 18 2012 56.0 Call @ 1.5 139.23
With this transaction our amount out of pocket is down to $52.20/share. That's good because the ETF has dropped to 52 and change. We are bullish the precious metals and believe that the recent downturn provides a buying opportunity. In fact we have some GDX puts that we wrote at the 52 strike.
It should be noted that before we entered into this trade we actually collected $489.25 in put money which we are not reflecting in these calculations. In any event, if we get called away in February we will make $380 which equates to 6.9% or ~21.1% annual. If we don't get called away then we'll write new calls, with a good hard look being given to the 56 strike again.
Showing posts with label gold miners covered call. Show all posts
Showing posts with label gold miners covered call. Show all posts
Monday, December 19, 2011
Wednesday, November 23, 2011
Rising Dividend Gold Stocks
This article is an interesting read for us who like precious metal stocks and rising dividends. I wasn't aware that the two intersected. Newmont Mining and Goldcorp are two gold stalwarts with rising dividends. Happy Thanksgiving.
Thursday, November 10, 2011
Trade continuation: GDX covered call
Today I rolled my GDX investment in a Roth IRA. The entire transaction is as follows:
10/25/2011 10:37:57 Bought 100 GDX @ 56.7268 -5,682.67
10/25/2011 10:38:30 Sold 1 GDX Oct 28 2011 56.0 Call @ 1.52 141.23
10/27/2011 10:52:44 Bought 1 GDX Oct 28 2011 56.0 Call @ 3 -310.76
10/27/2011 10:53:06 Sold 1 GDX Nov 19 2011 56.0 Call @ 4.1 399.23
11/10/2011 10:11:02 Bought 1 GDX Nov 19 2011 56.0 Call @ 4.6 -470.76
11/10/2011 10:12:04 Sold 1 GDX Dec 17 2011 56.0 Call @ 5.75 564.22
Today with GDX taking a breather and down to ~60.20 at the time of this transaction, I was able to roll out the deep in the money 56 calls for a net credit of $93.46. My cost basis/downside protection is lowered to $53.59. If I get assigned I'll make ~$241 or 4.3% which is annualized to ~26%. Not bad for a very conservative deep in the money investment.
10/25/2011 10:37:57 Bought 100 GDX @ 56.7268 -5,682.67
10/25/2011 10:38:30 Sold 1 GDX Oct 28 2011 56.0 Call @ 1.52 141.23
10/27/2011 10:52:44 Bought 1 GDX Oct 28 2011 56.0 Call @ 3 -310.76
10/27/2011 10:53:06 Sold 1 GDX Nov 19 2011 56.0 Call @ 4.1 399.23
11/10/2011 10:11:02 Bought 1 GDX Nov 19 2011 56.0 Call @ 4.6 -470.76
11/10/2011 10:12:04 Sold 1 GDX Dec 17 2011 56.0 Call @ 5.75 564.22
Today with GDX taking a breather and down to ~60.20 at the time of this transaction, I was able to roll out the deep in the money 56 calls for a net credit of $93.46. My cost basis/downside protection is lowered to $53.59. If I get assigned I'll make ~$241 or 4.3% which is annualized to ~26%. Not bad for a very conservative deep in the money investment.
Thursday, October 27, 2011
Trade continuation: GDX covered call
GDX jumped up to 59 so I decided to continue this trade rather than close it out. The transaction now looks like this:
10/25 Bought GDX @56.72
10/25 STO GDX Oct. 28, 2011 56 Call @ 1.52
10/27 BTC GDX Oct. 28, 2011 56 Call @ 3.00
10/27 STO GDX Nov 19, 2011 56 Call @ 4.10
With the recent rise in the market and precious metals, I'm not too excited about entering into any new income positions. I like to swoop in during fearful times, not euphoric times. I decided to take advantage of the herd's hopefulness and increase downside protection from $55.20 to $54.10 and bring in additional income of $110 per contract. This is a very conservative roll out as GDX is deep in the money.
If we get called out we get 3.4% in less than a month or ~45% annually. Not bad for a very conservative trade...
10/25 Bought GDX @56.72
10/25 STO GDX Oct. 28, 2011 56 Call @ 1.52
10/27 BTC GDX Oct. 28, 2011 56 Call @ 3.00
10/27 STO GDX Nov 19, 2011 56 Call @ 4.10
With the recent rise in the market and precious metals, I'm not too excited about entering into any new income positions. I like to swoop in during fearful times, not euphoric times. I decided to take advantage of the herd's hopefulness and increase downside protection from $55.20 to $54.10 and bring in additional income of $110 per contract. This is a very conservative roll out as GDX is deep in the money.
If we get called out we get 3.4% in less than a month or ~45% annually. Not bad for a very conservative trade...
Tuesday, October 25, 2011
GDX Covered Call Trade
Bought GDX @56.72
STO GDX Oct. 28, 2011 56 Call @ 1.52
This in the money weekly option has only 3 days left before expiration. If it gets called out we'll make $80 per contract for 3 days on a $5520.00 investment. That's a 1.45% return for 3 days or 176.41% annually. These calculations are exclusive of commissions.
Precious metals seemed to have bottomed and began their ascent once again. We would prefer to get called out but if not we'll simply write next week's call of our choosing. If it really craters we might write a monthly call. We have downside protection on this 3 day trade to $55.20.
STO GDX Oct. 28, 2011 56 Call @ 1.52
This in the money weekly option has only 3 days left before expiration. If it gets called out we'll make $80 per contract for 3 days on a $5520.00 investment. That's a 1.45% return for 3 days or 176.41% annually. These calculations are exclusive of commissions.
Precious metals seemed to have bottomed and began their ascent once again. We would prefer to get called out but if not we'll simply write next week's call of our choosing. If it really craters we might write a monthly call. We have downside protection on this 3 day trade to $55.20.
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