Checking in on the $NEM bull call spread
From last years article:
We have a nice inverse head and shoulders on the daily chart. Obvious critique here is, I was pretty aggressive at placing this order anticipating a snap back after bad earnings. I based my valuations on financial appraisal and external market conditions of Gold as opposed to just the technical chart. A pure technician would probably wait it out a bit more. That is what options spreads afford you as opposed to long calls alone. You can take more of an investors approach and still have exposure to a levered position.
As of this chart, my position is up 6% or so. That’s represented in the picture which was part of the original drawing. This validates the Black-Scholes model projection I colored in at original entry. This will be a visual indicator I’m looking to design in tradingview.
It’s not too late to take a position here. As of this writing NEM 0.00%↑ is +4% on the day. A down day is more optimal, but as it is I expect we get our 100% gain if not the second target.
Investopedia provides a quick explanation of the strategy:
I’ll be looking for more of these this year!
Cheers!
**Disclaimer:**
The information and outputs provided by this 5th generation finance model are for informational purposes only and should not be considered financial advice. While the model utilizes advanced techniques, financial markets are inherently complex and subject to unpredictable changes. Following the model's recommendations does not guarantee positive financial outcomes, and there is a possibility of financial loss.
**Important:**
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* Consider seeking professional financial advice tailored to your specific circumstances.
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