Fortress Financial Group fka FFGO

[moe_the_gyp01]

prisoner, have you been watching gold plays?

I cleaned up on a bearspread for FCX. Here, I told tex about it a couple of weeks ago.

FCX is down about 15pts since the trade!!

Posted by: moe_the_gyp01 Date: Monday, January 04, 2010 2:17:58 PM
In reply to: Texan77 who wrote msg# 96644 Post # of 100197

Tex, I do think gold is getting a bit toppy but not on a secular or protracted basis. Does that mean you should not take advantage of an opportunity to press the short side? Not on your life. The way I would play this for a short term buck would be as follows. Noting of course that 87.35 is the 52 week high and currently sits at 83.40 up 3.11 you should look at the FEB 90/95 bear spread using calls which have spiked up nicely making a bearspread nicely net credit. Right now a bear spread on the call site would open a credit spread of a little over a buck per contract. Contracts are FHZ (BR) 90.00 FHZ (BS) 95.00. I would also probably play a bull spread down to 75.00/70.00 thus locking in an Iron Condor again through Feb expiration. I think this play could pull in an easy 2k with a 5k margin requirement. As always be prepared to make adjustments if the trade exceeds the short or long strikes out in time or up/down in value.