This article originally appeared in the April 14, 2006 edition of FutureSource FastBreak
You may view it here.
[ Keep in mind that the specific trades referenced in this article are provided as educational examples and are not intended to be investment advice of any kind. For that you need to consult with a market professional who is familiar with, among other things, your investment objectives, your risk tolerance, and your available risk capital. ]
This is Part 1 of a two part article. In this section, we will discuss a couple of useful, but often under-used, option spread strategies. Please keep in mind that these are examples to illustrate a point. They may not be appropriate for all accounts. All trading involves risk of loss, and you should consider that prior to entering any trade.
If you asked me five years ago if we would be talking about $800 gold, I would have said it was unlikely. But during the bull run in gold during the last few years, and especially the last 12 months, it has become increasingly more likely that we will eclipse the old highs. The question then is how can we trade this market?
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