Let’s get right to my new recommendation: Buying shares of Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO).
Here are the basics behind the SLVO strategy:
First, it provides exposure to silver — which I want — through the notional positions in the iShares Silver Trust (SLV) shares.
Second, it generates income through a covered-call strategy, with a current yield of almost 15%.
The options seek to generate periodic cash flows that a direct long-only ownership position in the SLV shares would not, plus provides a limited offset to losses from downside market performance in the SLV shares via the cash flows from option premiums.
No doubt about it: This is a great way to gain additional long exposure to silver and at the same time generating a steady flow of monthly income. And that’s a win-win in my book.
Here’s what to do:
Place a standing good-till-canceled order using 5% of your funds allocated to the Speculator section and buy the Credit Suisse X-Links Silver Shares Covered Call ETN, symbol SLVO, at $8.00 or better. When filled, place a good-till-canceled protective sell-stop at $7.15.
In the meantime, continue holding your …
Shares in ProShares UltraShort Euro, symbol EUO. Hold and maintain your good-till-canceled protective sell-stop at $22.25.
If not on board, you may purchase EUO at the market using 10% of the funds you have allocated to The Speculator section. Place a good-till-canceled protective sell-stop at $22.25.
Shares in ProShares Short QQQ, symbol PSQ. Hold and maintain a good-till-canceled protective sell-stop at $35.85.
We are nearing a seasonally weak period for the equity markets, so I am still expecting a decent-sized corrective pullback as we head into the fall.
If not on board, you may purchase PSQ at the market using 10% of the funds you have allocated to The Speculator section. Place a good-till-canceled protective sell-stop at $35.85.
Shares in ETFS Physical Platinum Shares, symbol PPLT. Hold and maintain a good-till-canceled protective sell-stop at $81.07.
If not on board, you may purchase PPLT at the market now using 5% of the funds you have allocated to The Speculator section. Place a good-till-canceled protective sell-stop at $81.07.
