In previous post on MoneyAccumulator.com I wrote about the CALL options I bought on SLV (Silver ETF) for expiry of January 2010 with a strike price of $19. Well, I recently sold the options contract when the SLV ETF reached the price of $20.60.
The price I bought the SLV ETF contract was $1.80 and then I sold it for $2.45…so that is a profit of $0.65 or $65 per options contract and of course minus the commissions of $15(buy) and $15(sell). So, if you bought 2 contracts that was a $130 – $30(commission) = $100 USD. One contract would be $65 – $30 = $35 USD profit…you get the idea.
I closed this trade to take the profit and run…and also to get out of trading in U.S dollars. The consensus out there in the world market is that the United States government will be trying to bring down the value of the dollar by as much as 20-30% over the next year or so.
In light of this, my goal is to basically clear my funds from my trading accounts that are in U.S dollars to avoid depreciation over the next year or so, and start to trade within my Canadian dollar accounts. The last thing anybody wants is see the money in their trading account go down 20-30%.
In my next post, I will write about Canadian ETFs.
by Das Brain
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