Get started

XME

Is this the rebound of the metalsquietly the XME has broken out of a 2017 lull, and with that we go long.. a few ideas how to play this 1. Poor Mans Covered Call 2. Sell puts.. Both situations seem decent, but if you look at the possibility of being wrong, the PMCC offers the least amount of pain and suffering. Lets explore if selling puts, using Delta30... we will be getting $53 and using 989 in margin for Feb 02 34 Puts... The key here is that 34 is the prior resistance/ now support... if buying a PMCC Sell 1 contract of XME 2018 19-JAN 36.00 CALL @ $0.45 Buy 1 contract of XME 2018 15-JUN 34.00 CALL @ $3.00 Current Stock Price : $35.22 Break Even #1 : $34.58 Break Even #2 : $40.25 Total Requirement: $254.50 Put Guarantee Price: $0.00 Max Risk: $254.50 % Max Risk: 100.0% Max Profit: $90.00 % Return: 35.4% I will be using the PMCC model, as it will allow a greater return, and less pain if wrong... also the possibility to continue writing calls for 6 more months
AMEX:XMELong
by MaccabiCapital
WEEK OF 9/25: IV REMAINS IN GOLD, MINING, PETRO SECTORSWhile broad market implied volatility has basically been absent (we had one VIX pop to ~20 on 9/12, after which it has receded dramatically), it has remained in the same place as it has for the past several weeks -- in gold, mining, and oil and gas, with a smattering of high IV in individual biotech issues. Here are the top high IV stock and ETF options as of Friday close, screened for good liquidity: NVAX (biotech) (134.9%) VRX (biotech) (80.0%) GPRO ("gadgets") (80.0%) WLL (oil and gas) (79.9%) CHK (oil and gas) (79.4%) CLF (mining) (73.1%) AG (silver miner) (70.8%) AMD (semicon) (68.9%) TWTR (66.5%) (M&A rumor) ESV (oil and gas) (65.2%) GDX (gold miner ETF) (42.8%) XME (mining ETF) (37.6%) XOP (oil and gas ETF) (36.9%) In comparison, SPY implied volatility currently stands at 13.1%; DIA, 13.2%; QQQ, 14.7%; and IWM, 17.7%. Unfortunately, this makes selling premium a touch frustrating here (at least for me), since I'm already in NVAX, CHK, WLL, CLF, AG, AMD, and GDX, and there is some correlation between GDX and XME, so I don't necessarily want to pile into more individual miners -- whether they be gold, silver, or otherwise. Additionally, I think my "petro boat" is fairly full here, too. At least for me, it's probably a bit of hand-sitting (although I could "dabble" with GPRO or VRX) until something pops to the forefront ... . In any event, can't hurt to have dry powder running into these "little elections."
AMEX:GDX
by NaughtyPines
GET OUT OF THE S&P RUT: LOOK AT ETF'S AND INDIESIf you have ever spent more than a few hours in the Stocks and Indices chat room, you'll soon get the impression that the trading universe is seemingly made up primarily of E-Mini S&P Futures, SPX CFD's, and/or SPY (I probably exaggerate a touch, but that's the overall impression I get), along with a repeated frustration with the way the S&P is behaving in one way or another: the old "it shouldn't be here," "a correction is due," "who's buying way up here," etc. In short, some are frustrated, for various reasons, with the S&P or other broad U.S. market instruments. Well, there's hope for you out there ... . And that's because the trading universe is made up of a ton of instruments that focus on various sectors, various markets, and individual companies. Naturally, some of these don't trade 24/5 like SPX500 or /ES, but if you can't figure out how the S&P, /ES, or SPX500 should be traded here, you should quit banging your head against the wall and move on to other instruments. (Unless you enjoy banging your head against a wall ... ). Some of the more obvious things to look at are naturally instruments like GLD (the gold ETF), SLV (the silver ETF), and TLT (the treasuries ETF). For non-US broad market exposure, look at things like EFA (the world market, ex. Canada and the U.S. ETF) and EEM (the emerging markets ETF). And for U.S. equities sector exposure, look at sector SPDR's, such as XME (mining), XBI (biotech), XRT (retail), XLF (financials), etc. Naturally, getting into individual stocks can be a bit of a slog due to the number of companies involved. However, you can contract that universe to liquid stocks trading an average than 2 million shares daily and that are within the price range you want to devote to a play.
AMEX:EFA
by NaughtyPines
TRADE IDEA: XME OCT 7TH 24.5 SHORT PUTHaving the highest implied volatility of all the SPDR's currently, I'm looking to sell a small amount of premium here at the 30 delta strike approximately 45 DTE as a possible alternative to doing a covered call in a mining underlying (such as GDX, GDXJ, KGC, AUY, HL, etc.). Here are the metrics: Probability of Profit: 74% P50: 89% Max Profit: .66 ($66)/contract Max Loss: $2384 (if the stock went to 0 between now and expiration, and you did nothing) Buying Power Effect: $245/contract Break Even: 23.84 Notes: As with all premium selling setups, I look to take off the trade at at least 50% max profit. However, since this is a naked short put, I look to roll the option out for duration when the value of the put exceeds twice the credit received (which means price has moved toward the short put, such that its value has increased). When that occurs, I roll the short put down and out to a strike and an expiry in which I can receive a credit for the roll.
AMEX:XME
by NaughtyPines
TRADE IDEA: XME JUNE 24TH 19/23.5 SHORT STRANGLEFollowing the premium. With a nearly 70% implied volatility rank and an implied volatility slightly north of 50%, I'm going nondirectional here (what's new) with this short strangle. Metrics: Probability of Profit: 65% P50: 78% Max Profit: $107/contract Max Loss/Buying Power Effect: Undefined/~$250/contract Theta: 2.55/contract Delta: -7.55/contract Notes: I'll shoot for taking this off at 50% max profit ... . Premium selling opportunities in underlyings with >70 implied volatility rank and >50 implied volatility are still thin in this market. My choices were XME, GDX, and GDXJ. I already have a couple of short strangles I layered on in GDX, so XME it is.
AMEX:XME
by NaughtyPines