Comments: Selling the -75 call against a one lot here out in June where I have covered calls at the 29, 27, and now 24 strikes. 1.17 max on BPE of 22.83; 5.12% ROC at max; 2.56% at 50% max.
Going monied CC here in lieu of an equivalently delta'd short put to take advantage of call side IV skew (39.6% on the call side; 29.18% on the put side at the 24 strike).
This is probably about as much BP I want to devote to a miners position, which I view as an indirect rate cut play with the notion being that the dollar weakens somewhat, gold strengthens, and miners indirectly follow with bets being that there's a rate cut in May. It may naturally end up being later; the market hasn't exactly been "spot on" with either the timing of depth of cuts of late ... .
Alternatively, GDXJ/GDX are at the top of my screener for 30-day IV, so I'm just going where the juice is at.
Trade closed: target reached
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Hit 50% max today, closing for a 23.42 debit. .59 ($59) profit; 2.58% ROC. Still have the Sept 20th 29's, June 21st 27's, and August 16th 22's on.
Gold unfortunately is going nowhere until the fed pivots...it has been buy the rumor sell the fact for years, fed pauses and it's now sell the rumopr buy the fact. Gold went down on higher jobs, then it went down on lower jobs. It's lose-lose for gold bulls. Fortunately once the fed pivots we will see gold outperform most assets heading into 2028. I still wouldn't put all your eggs in one basket. By 2028 election the debt will be $46 trillion, that's close to nearly all US tax income in just interest payments alone.
NaughtyPines
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@SilverChad, Oh, agreed (on gold macro/eggs in one basket). I'm also okay with it taking time to work out ... .