Selling AU puts for income.
Anglogold Ashanti (AU) is a gold mining company that should benefit from higher gold prices.
Investors have finally started buying gold to protect their wealth against inflation. The slide in cryptocurrencies is a factor here as investors are bailing out of this “inflation hedge” and moving back towards the more traditional precious metals sector.
By selling the March $19 puts near $1.10, we’re able to collect an annualized yield near 41%, while also giving us roughly $0.75 per share in cushion between the current market price for AU and our strike price.
- Sell (to open) 4 AU March 18th $19 put
- Limit: $1.10 or more
- The new position will represent roughly 7.9% of our model.
- 9:51 Executed
- Sold 4 AU Mar 18th $19 Puts @ $1.10