For weeks now, I’ve been banging the drum, trying to let you know about what could be the year’s biggest opportunity to reap huge profits.
I detailed how the Fed’s rate hikes and the threat of a coming recession will propel the price of gold higher…
We’ve talked about how the weakening of the U.S. dollar, as well as rising inflation and waning investor confidence also historically drive up gold, silver and other precious metals.
And most recently, I showed you how the debt ceiling crisis is the latest catalyst that could kickstart the massive gold breakout I’m predicting.
With the latest round of negotiations looking more and more like they’ll stall out, the drop in the stock market and flight to safety in assets like gold could be just days away.
Sure, you could just buy gold and silver securities like SPDR Gold Shares (GLD) and iShares Silver Trust (SLV). Stocks like those are great assets to own these days.
But I’ve got a better way to trade this opportunity that will not only allow you to collect income just for entering a trade, but also gives you the opportunity to buy gold and silver stocks at well below their current value.
Let me show you how…
Get Paid to Make More Money
While the price of gold has risen significantly since the start of the new year, as you can see, it’s not something that happens in a straight line…
As with any stock, the idea is to buy low and sell high. The difficulty comes in knowing whether you’re buying gold as it is surging upward, or you’re topping the stock and will be stuck with a losing position until the price is able to rally back above the price you paid.
But what if I told you that there’s a way to ensure that you were buying shares at a significant discount, at a point where prices are likely to rally, and make money just for doing so?
I know, it almost sounds too good to be true, but that’s the beauty of selling put options.
Let me explain…
Even a novice options trader likely has experience in buying put options.
Buying a put option is like buying insurance.
Owning a put option gives you the right to sell a stock at a particular price. For example, if XYZ is trading at $50, you could buy a $50 put that gives you the right to sell XYZ at $50. Should XYZ drop to $40, you could exercise your right to sell XYZ at $50 – just like an insurance policy.
Of course, buying an insurance policy costs money – and so does a put option. The cost of a put option is called the premium.
And remember: If someone has the right to sell, then there has to be someone else who has the obligation to buy.
In the options world, you can take the role of the insurance company by sellingputs. This leaves you with the obligation to buy stock.
By selling a put, you’re obligating yourself to buy it at a price that’s even lower than it is today – and you get paid to do it! In selling a put, the premium from the buyer of that put is credited to your account up front and is yours to keep, even if you end up purchasing the stock.
As part of the top-performing strategy I’ve ever deployed – and with the help of my proprietary trading tools – I plot probability charts to identify price points which are likely to attract buyers and drive the price back up.
That price is the strike price of the put options we then sell. Should the price of the stock drop to that price or below on the expiration date of the put that we sold, we then have the opportunity to purchase 100 shares per put option sold at the strike price.
Example: Say you sold one contract of the GLD July 21, 2023 $175 Put. Assuming the share price of GLD falls to or below $175 on July 21, you would have the opportunity to buy 100 shares of GLD for $165, well below the price of GLD when you entered the trade.
(Please note: this is merely an example to help you understand how put selling works, not an actual trade recommendation)
How to Capitalize on the Coming Gold Boom
Put selling is just one of several powerful options trading strategies I’m utilizing in my brand-new Traders Resource Alliance research service.
With the help of 40+ year precious metals trader Brien Lundin, we’re helping members make the most of the coming boom in gold, silver, and other precious metals with a target list of over 50 stocks!
Just yesterday, I released my two latest trade recommendations – but to get all of the trade details, you need to be a member.
Get all of the details on why I believe gold is 2023’s biggest profit opportunity, and how I’m going to help you take full advantage of it!
I’ll be meeting with Resource Traders Alliance members in our live trading room again on Monday at 2pm ET for the latest intel on the precious metals market, and perhaps my next set of trade instructions.
I hope to see you there!
To your success,
Tom Gentile
America’s #1 Pattern Trader
