Zacks highlights commentary from People and Picks Member «JaiH».
For more Voice of the People, visit http://at.zacks.com/?id=7872
Featured Post
Following DiviMO in the Gold Sector
Following up on DiviMo’s ideas I am following a buy write (covered call) strategy to generate income. I am also buying some puts to limit my downside risks. I decided to invest in the gold sector. The gold sector is volatile, so option premiums are very high. Even though the gold stocks don’t pay much of a dividend, the option premiums more than make up for that. Gold is also in a bull market, so chances of making capital gains are higher.
I have found an ETF from Horizons alpha pro (Canadian ETF) which does the covered call strategy for precious metal stocks. Some of my money is invested in physical Gold with a Claymore ETF. The ETF is currency hedged, so I make money even when the US dollar goes down.
To limit my risk I have bought GLD puts, so that if there is a deep correction in Gold, I have some protection.
The objective is to generate 15% annual return on average while reducing the volatility of my portfolio. The volatility is low, for example Gold went down about 4% today, but I lost only 1.56%.
The most recent picks by «JaiH» are:
A buy rating on Silver Wheaton (SLW),
a sell rating on SPDR Gold Trust ETF (GLD) and
a buy rating on Goldcorp (GG).
About the Zacks Community
In 2008, Zacks Investment Research launched PeopleAndPicks.com, a stock-picking website where members of the Zacks community can test their strategies and share ideas with other members. Each user is scored on the accuracy of his or her picks, and top users are rewarded with free products from Zacks. Registration is free. To learn more about People And Picks, visit http://at.zacks.com/?id=7870
Follow us on Twitter: http://www.twitter.com/PeopleAndPicks
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3:1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit From the Pros by going to http://at.zacks.com/?id=7867.
