Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Gold Prices
Gold Price
[Most Recent Quotes from www.kitco.com]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Day 2 - Casey’s Gold & Resource Summit | Main | LIVE from Casey’s Gold & Resource Summit »
Sunday
Oct032010

GLD Calls Return 50% in 30 Days for OptionTrader Subscribers

With gold hitting new all time highs above $1300, many gold bulls are reaping the financial benefits in their portfolios. However the question is not only are you making money from this run up in gold prices, but are you making the most money you can?

Most importantly, are you maximising your reward/risk ratio and enjoying fantastic profits without taking extortionate risks?

Our OptionTrader service is aimed at maximising the reward and minimising the risk in every trade we recommend.

GLD Calls Return 50% in 30 Days for OptionTrader Subscribers

As you can see in the chart above our strategy enabled us, and any OptionTrader subscribers fortunate enough to follow us in this trade, to bank a 50% profit in 30 days.

Over the same period gold, or the gold ETF GLD only gained 5.5%, meaning our call options outperformed gold by nearly tenfold.

Gold stocks such as AEM, KGC and AUY have only gained about 9-11% and double leveraged gold ETN’s are up about 10%.

We think this demonstrates that the best way to make the most money in this gold rally is by using options.

Whats more is that this example trade detailed above it not a highly speculative option. When purchased it was already well in the money, since the strike price of the option was $115 and gold was trading around $122. It also it didn’t expire until January 2011, meaning we had four months for gold to make its move.

As for how far we needed gold to move, well since we paid $10.00 for this option and it was already $7.00 in the money, which means we were paying a $3.00 time premium. This $3.00 of value would gradually decay as January 2011 comes closer and the options gets closer to its expiration date. Therefore so long as GLD gained $3, equivalent to gold prices increasing by $30 or 2.5%, over the next four months, we would break even and anything better than that would result in a profit.

We were very confident that gold would rise substantially more that 2.5% in a lot less than four months, so not only was the reward for this trade excellent, the downside risk in our opinion was minimal.

Successful trading and investing hinges on effectively managing risk and potential reward of every move you make. At SK Option Trading this is our one of our most central philosophies and it is instilled in the trading practices of our premium options trading service OptionTrader, which delivers options trading signals and updates via email in real time to subscribers.

Evidence of our success can be seen in our trading record, which is published in full here, with no trades omitted.

We are averaging a return of over 28% per trade investing just $1000 in just one of our trades would pay for your subscription.

Furthermore, if you had invested $1000 in each of our recommended trades to date, you would have $7077 in profits
.

In terms of risk versus reward, at $199 for 6 months with over $7000 in profits to be had, this is an investment that you should seriously consider.



Subscribe for 6 months - $499

 

Subscribe for 12 months - $799

 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>