This strategy works best when you expect GLD to rise slightly, stay stable or not fall below a specific price point before a certain date .
How It Works:
1. Sell a Higher Strike Put: You sell a put option with a relatively high strike price & a specific expiration date . This generates immediate income from the premium you receive.
2. Buy a Lower Strike Put: Simultaneously you buy another Put option on GLD with the same expiration date but at a lower strike price. This action serves as insurance, capping your potential losses if gold prices fall unexpectedly.
This options strategy allows you to have a moderately bullish view on Gold while defining your risk appetite from the outset.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- icycrystalยท01-06TOPthanks for sharing1Report
- VivianChuaยท01-07็พๅฅฝ็๐๐๐1Report