Gold Options Trading Bullish Calls
Investors have taken a bullish stance on Barrick Gold (GOLD), with 14 uncommon options trades for Barrick Gold, with 2 puts and 12 calls. The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish. The big players have been eyeing a price window from $10.0 to $20.0 for Barrick Gold during the past quarter.
Benefits of Investing in Precious Metals
There are several benefits to investing in precious metals, such as gold, silver, platinum, and palladium. These metals are considered to be a good store of value and can be used in many ways, including jewelry, industrial applications, and as a hedge against rising consumer prices.
Types of Precious Metals Investments
There are several ways to invest in precious metals, including through coins and bullion, mining company stocks and mutual funds, exchange-traded funds (ETFs), futures, and individual retirement accounts (IRAs).
Precious Metals Prices Vulnerability
Precious metals prices are vulnerable to a handful of factors, including scarcity and availability, natural events, geopolitical activity, and market trends.
Investing in Precious Metals Companies
Freeport-McMoran Copper & Gold (FCX) investors can benefit from new options trading today. The YieldBoost formula has identified a put and a call contract of particular interest for the May 10th expiration. The put contract at the $44.00 strike price has a current bid of $1.14 and represents an attractive alternative to paying $46.35/share today. The put contract has a 5% discount to the current trading price of the stock and a 68% chance of expiring worthless, which would result in a 2.59% return on the cash commitment. The call contract at the $47.00 strike price has a current bid of $1.38 and represents a 4.38% return on the cash commitment if the stock gets called away at the May 10th expiration. The call contract has a 1% premium to the current trading price of the stock and a 50% chance of expiring worthless, which would result in a 2.98% boost of extra return to the investor. The implied volatility in the put contract is 39%, while the implied volatility in the call contract is 45%. The actual trailing twelve month volatility is 34%.
Investing in Precious Metals ETFs
Investors can also invest in precious metals through exchange-traded funds (ETFs). These ETFs provide exposure to the precious metals market without the need to buy physical metal or mining company stocks. Some popular precious metals ETFs include the iShares Precious Metals ETF (IPE), the SPDR Gold Shares ETF (GLD), and the SPDR Silver Shares ETF (SLV).
Conclusion
Investing in precious metals, such as gold, silver, platinum, and palladium, can be a valuable way to diversify an investment portfolio and hedge against rising consumer prices. There are several ways to invest in precious metals, including through coins and bullion, mining company stocks and mutual funds, exchange-traded funds (ETFs), futures, and individual retirement accounts (IRAs). Precious metals prices are vulnerable to a handful of factors, including scarcity and availability, natural events, geopolitical activity, and market trends.
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