If anyone believes that the 'guru's on Wall Street are normally right, here is an interesting one: I have listened to several broadcasts by Peter Schiff, who is worth a bit and certainly has a big voice out there. Most of the things he says are quite interesting and educational, but I always questioned his extremely bullish stance on Gold.
I don't know when he turned so bullish on gold, but I have seen nice ups and downs since. His prediction was that gold is going to be worth significantly more around now, because of the inflation and the market collapse.
Well, it's worth taking a quick look at the weekly chart below...
It doesn't look like Gold is going to double any time soon.
But perhaps, it's time to take a small bullish stance.
So what's my trade for today?
As gold has collapsed badly over the past few weeks, it's certainly time to sell some puts. However, instead of trading GLD, which is the physical gold ETF, I decided to trade #GDX (#GoldMinersETF) because it's much cheaper and requires much less capital.
GDX Weekly Chart
Trade Type: Short put
Expiry: 19 Aug
IV Rank: 83.8
Cap Req: $246
Annualised Prof at Expiry: 206%
IMPORTANT: Studying previous trades provide the opportunity to everyone to learn a great deal so I encourage you to click on the links below and digest the info.