Gold and or silver ETFs...own, do leap, covered calls

Discussion in 'ETFs' started by Cabin111, Jun 4, 2019.

  1. Cabin111


    Just throwing it out there. I do cover calls mostly. I am doing more ETFs such as China or Asia ETFs. Just want to throw this one out there for the conservative investor who would want to play gold or silver and generate income.

    What are your thoughts of buying an ETF of gold or silver. Then doing a long leap, say Jan 21 for the next highest dollar amount above what you bought the ETF for. Haven't looked...just an example OK. Buying a gold/silver ETF for say $12.88. Then option the Jan 21 for $13., not really looking at the gain of the stock price, just capturing the option money. If the stock drops or stays the same for the 18/19 months you get the option money (plus the option money earning interest in a money market fund...compounding). If the ETF is down over that time, do another leap. I don't have any tax issues...I create expenses from health insurance (thank you Obamacare) and repairing rentals. Also much of my money is in Roth IRAs so no tax issues there. Please shoot down this idea of maybe making 4-5% annual on a boring option.
  2. gaussian


    Why not short a put instead at a price you wouldn't mind owning the ETF and keep your capital expense lower.