The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Liquid Lounge

URL:  http://boards.fool.com/the-lowest-risk-entry-now-for-a-really-long-term-30374640.aspx

Subject:  Re: Gold - Updated TA Date:  11/11/2012  12:03 AM
Author:  CM001 Number:  41177 of 41316

The lowest risk entry now for a really long-term position is wait for the pullback to the 200 DMA/10 month moving average.

Looks like Gold had bounced off the 200 DMA as expected. I was too busy following election and getting diverted with political posts and completely missed this.

Given the fiscal cliff and all other uncertainties I am hoping Gold will not crash. I am thinking about credit spread.

I can buy $145 put Jan expiration and sell $155 put for 3% return on capital at risk or $155/$160 for 17.5% return.

The $145/150 gives me 10% downward protection for 70 days to expiration with 200DMA in between for support looks interesting bet even though 3% simple return and 15% annualized return is is not so great but okay.

Any thoughts, suggestions?
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us