i want to buy gold and or silver futures positons with protective puts is this a good way to speculate on gold?

future firm
michaelpc12 asked:

how would i do it and could this exempt my from margin calls if the future position went to far against me provided my put position still worked . also is there a good brookerage firm that could help me do this .

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2 Responses to 'i want to buy gold and or silver futures positons with protective puts is this a good way to speculate on gold?'

  1. chrgr - April 9th, 2009 at 12:32 pm

    Today is Thurs. the 18th. Tomorrow I would be a seller of the precious metals, big time! Gold has run up $120 in 2 days. Time for a pull-back.
    In fact, it will probably resume its downward direction for quite awhile given the strength of the dollar and the stablization of the stock market.

  2. tplinvestment - April 9th, 2009 at 8:02 pm

    If you want to speculate on gold, you can purchase an ETF for gold called GLD. This trades like a stock. What you can do is buy this stock and sell calls, basically doing a covered call strategy. With that money you received from selling the calls. You can use that to buy your puts as protection. So, in essence, you got free protective puts.

    Happy Trading,

    Jun


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