11-29-24: Trade Alert: WPM Diagonal Spread( Closed: 11.8% in 6 Days)

Gold and gold stocks pulled back to support and momentum is strong

Wheaton Precious Metals WPM 0.00%↑ is a gold royalty company. Unlike gold miners, gold royalty companies can be good long-term investments.

WPM has a low IVR that offers an excellent risk-reward diagonal spread.

I bought a synthetic-covered call/diagonal spread to take advantage of time decay, low implied volatility, and no earnings releases before expiry.

I choose strikes and expiration dates that maximize time decay, delta, and implied volatility.

Learn how I reduced my risk, exit strategy, and why I chose a synthetic covered call for WPM.

WPM Daily Chart

The MACD and the B-extender are turning positive as WPM has held above support at around $61.

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