05-02-2021, 04:42 AM
Opinions on gold? Looking at the ticker specifically (GOLD - barrick gold corporation) but of course the price of the actual metal makes a huge difference here.
I do see that fenders has been busy with gold puts earlier this year.
Idea would be to buy now and immediately sell covered calls in the $20 to $25 range with a few different expiry dates through 2021. Or alternatively just sell some puts.
Quick reasoning: Overall the company is making great progress on the balance sheet side, dividend is growing nicely, they will be profitable even if the price of gold drops, however I think that no one is in a hurry to increase interest rates and with this ridiculous amount of helicopter money being thrown around, the macro situation should be more of a tailwind for gold price, right?
I do see that fenders has been busy with gold puts earlier this year.
Idea would be to buy now and immediately sell covered calls in the $20 to $25 range with a few different expiry dates through 2021. Or alternatively just sell some puts.
Quick reasoning: Overall the company is making great progress on the balance sheet side, dividend is growing nicely, they will be profitable even if the price of gold drops, however I think that no one is in a hurry to increase interest rates and with this ridiculous amount of helicopter money being thrown around, the macro situation should be more of a tailwind for gold price, right?