I had some extra money in my Roth IRA...Wanted to put it somewhere. I bought 100 shares of GDXJ junior gold mining companies. I was wanting to add gold and I felt if gold rises, one (or more) companies could be buyout candidates. So I bought the stock at $39.68...I then optioned the Nov 23 $41. for $4.60 ($460.). Just a little better income that a CD. I felt I would get ripped here, since the stock dropped yesterday at the end to $39.39. Now I feel much better about the trade. Yeah, boring...
Gold is doing fine ATM, so long as the debt ceiling issue is hanging over the markets. Once it gets resolved Gold will likely go back into sideways pfft mode.
I guess you were too embarrassed because you bought GDXJ yesterday and you didn't buy it 2 months earlier. Or you could be embarrassed because you were supposed to SELL and not BUY. Just learn from mistakes. In trading, timing and correct trend analysis are very important. GDXJ has the tendency to swing up and down.
Yeah, I hope it doesn't get called away...Just me. I will take a high option premium...Nothing wrong with that. I'll write another option in Nov 23. The price went up 3.25% today...I must be an idiot. I could buy my option back tomorrow and sell the stock...Make about $50. in two days. Hey Mick, what's my annual return on that (tax free)?? So I trade different...I post my failures and successes. I am open about it. These are not rocket science trades. They're just trades with covered calls. Will I probably beat the 4.25% money market fund?? I hope so...Will I beat 6.? inflation?? Probably I will...The premium will compound at 4.25%, plus .005% dividend...Free money in a Roth IRA.
GDXJ is at a critical juncture along with other gold indexes atm, it can go either way. It's tempting to buy now, but imo it's still too early. Long term there is a buy signal in place but its also at major resistance. GDXJ could easily fall to $36 over the next month. Right now I have a short term sell.
How I trade (invest)...When the second Boeing 737 MAX went down (a few days later), I bought 100 shares. I was looking for the post here, but couldn't find it. I think I bought it (just a guess) for about $100. a share. I then did a leap...Because the stock was so low and the option premium was so high. The option was for $110. or $120...This was over 4 years ago. I figured Boeing would find/correct the problem (they did). Did I mind it getting called away a year later? Not at all. Very little downside (but still some). Let them collect the upside, while I grab the high option and run for the hills!! Find value and (maybe) collect the option money...Depending on the stock. The Boeing 737 MAX passenger airliner was grounded worldwide between March 2019 and December 2020 – longer in many jurisdictions – after 346 people died in two crashes: Lion Air Flight 610 on October 29, 2018 and Ethiopian Airlines Flight 302 on March 10, 2019. The U.S. Federal Aviation Administration (FAA) resisted grounding the aircraft until March 13, 2019, when it received evidence of accident similarities. By then, 51 other regulators had already grounded the plane,[3] and by March 18, 2019, all 387 aircraft in service were grounded.