What goes up must come down - and that's giving us an opportunity for a nice payday on one of my favorite speculative assets.
I'm talking about gold.
The recent banking crisis encouraged a flight to quality, which precipitated a nice pop for gold - but as frightening as that might have seemed in the moment, one thing is sure...
We're not going back to the gold standard!
No matter how much you want to shine it up, it's still just gold. If you've been with me a while, you'll know I'm not really into it as a long-term investment asset. It's no magic elixir - but it is a great vehicle for trading.
And trading, just as the name suggests, means making money in both directions, up and down. When there's an opportunity to make money on a market reversal, that's a chance for us to "flip the chart" - and in the case of this particular asset, we're talking about quick, easy triple-digit profit potential.
To do this, we're going to target the SPDR Gold Trust (GLD), which has had a tremendous run over the last month, gaining as much as 12.97% since March 8, 2023.
Now, though, GLD is considerably overbought, and I see it trading lower in the near-term, if for no other reason than for traders to take profits..
So at this point, I like buying the GLD May 19, 2023 $185/$180 Put Spread for $2.00 or less and taking profits at 100%.
As long as GLD closes below $180.00 (just 2.6% lower than where it's currently trading) on May 19, 2023, this trade will have easily delivered our 100% profit target.
It's easy to understand why gold has had a run up recently - everyone's looking for safe havens in a market that seems full of landmines between the banking crisis, continued stubbornness from the Fed, and an earnings season that could be dicey.
But there are better opportunities out there. Consider this: the Department of Energy is pouring $13 billion into our country's electric grid, and I have a lead on a company that could take the lion's share of it.
As of now, shares are going for less than $5. But this is only for investors who act before April 20. After that, you'll be up against institutional buyers and Wall Street, so the time to get in is now. I have a full report here...
The post Make This Gold Play Right Now for a Quick Triple-Digit Profit appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.