Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Find Slight Gains on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 5 25 2018
By: Ira Epstein

COT Gold, Silver and US Dollar Index Report - May 25, 2018
By: GoldSeek.com

Gold Juniors’ Q1’18 Fundamentals
By: Adam Hamilton, CPA

Trump "Victories" on Trade are Anything But
By: Peter Schiff

Debt Slaves, Part 1: Million Dollar Student Loans And The Coming Bailout
By: John Rubino

Three Drivers of Gold, Second Look
By: Arkadiusz Sieron

GoldSeek Radio Nugget: Peter Schiff and Chris Waltzek
By: radio.GoldSeek.com

Can We Really “Time” The Market?
By: Avi Gilburt

GLOBAL FINANCIAL BREAKDOWN CONTINUES: Economic Growth Chokes On Massive Debt Increases
By: Steve St. Angelo

 
Search

GoldSeek Web

 
How to Bet That the Bull Will Soon Drop Dead

By: Rick Ackerman, Rick's Picks

 -- Published: Monday, 19 September 2016 | Print  | Disqus 

http://www.rickackerman.com/wp-content/uploads/2016/09/Mother-of-all-tops.jpg

Based on reports from subscribers in the chat room who legged into the position detailed here last week, I am tracking the Oct 21 200 – 195 put spread eight times for a net credit of 0.37.  As is my custom, I use the worst fill reported, since I never want to be in the position of saying a Rick’s Picks recommendation made money in theory when my subscribers have failed to do so. Nor do I ever want to overstate the profit on any trade, since results could vary significantly from one subscriber to the next. The position detailed above cannot lose money and will produce a profit of $296 if SPY is trading 200 or higher on October 21, when the options expire. However, the gain would increase by $800 for each one-point drop below 200, to a maximum of $4296 at 195 or lower.  That would represent a fall of 8.7%, about two-and-a-half times SPY’s plunge last week from near-record highs.

Stay tuned for updates, since I will try to augment our short position, with risk as tightly controlled as possible, if the opportunity should present itself. Essentially, this will entail buy out-of-the-money puts when SPY is close to a rally target, then turning the position into a vertical bear spread by subsequently shorting puts on weakness. Our goal will be to sell the short puts for at least as much as we’ve paid for the ones we are long. The result would be a virtually riskless vertical spread similar to the tracking position described above. This bull market feels to me like it’s on its last legs. However, we should never presume to be able to predict exactly when El Toro will drop dead. Using strategies like the one detailed above is the best way I know of to bet on the bull’s inevitable collapse and to make some bucks while we wait, even if we are wrong.  Visit our 24/7 chat room and share timely ideas and real-time results with great traders from around the world. Click on the link for a free trial subscription.

 


| Digg This Article
 -- Published: Monday, 19 September 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.