Option Investor
Newsletter

XAU spread added to Recommended list

HAVING TROUBLE PRINTING?
Printer friendly version

The following spread is being added to our recommendation list

XAU - Philadelphia Silver and Gold Index

The U.S. economy currently facing an increase in retail prices, which is a forerunner
of inflation. This uncertainty will keep investors hedging with gold and precious metals.
In addition, we don't see this uncertainty ending until U.S retail prices, especially energy related issues level off.
WIth winter rapidly approaching the scenario of lower energy prices seems very unlikely.

XAU $112.00

SELL XAV-VA $XAU OCT 105 PUT CREDIT = $0.80
BUY SWO-VA $XAU OCT 102.5 PUT DEBIT = $0.50
NET CREDIT = $0.30
INITIAL "NET- CREDIT TARGET= $0.30 or $30.00
POTENTIAL PROFIT (x 10 CONTRACTS @ $0.30 = $300.00
MARGIN REQUIRE. (x 10 CONTRACTS $2,200.00
RETURN ON INVESTMENT= 13.64%
EXIT Strategy IF NET DEBIT = $1.00

Monthly Cash Machine Newsletter Archives