Imagine being done with the day’s trading 20 minutes after the opening bell…!
On Friday’s Profit Panel, I said what I’m thinking right now: if rates ease, metals can do better.
I’m not trying to pick a top or a bottom. I just want a sensible way to get exposure that fits how I trade.
For me, that means playing platinum through the ETF PPLT.
Hybrids use a lot of platinum in their exhaust systems. If car buyers keep leaning toward hybrids over full EVs, that’s steady demand. That’s enough of a push for me to take a measured swing.
I didn’t chase it. I used an income approach.
I sold the PPLT Oct 17, 2025 $118 put for about $2.82.
We also looked at the $119 and $120 strikes so folks could see the trade-offs as you move up or down the ladder.
In plain English, someone paid me $2.82 per share today to agree to buy PPLT at $118 if it’s below $118 when the option expires.
If PPLT stays above $118, that option expires and I keep the cash.
If it drops and I’m assigned, I buy at $118 and my effective cost is $118 minus $2.82, or $115.18. I’m comfortable owning it around there.
Why not just buy shares now?
Because I’m willing to own it near $115, and I’m fine getting paid to wait.
If I never get the shares, I still keep the premium. If I do get the shares, I own them at a discount and can sell covered calls for more income. That fits my temperament.
A couple of guardrails:
- This is cash-secured – I keep enough cash in the account to take the shares if assigned… no margin games.
- Small size – Metals move on headlines, and ETFs can gap, so there’s no reason to get big.
If the story changes or price cuts through my level, I can buy the put back and stand aside. If I’m assigned and it keeps drifting, I’ll work the position with covered calls and let time do some of the job.
That’s the whole idea. Let rates do what they do. Use a simple contract to collect income while I wait. If I get the shares, I own them at a number I like.
If not, I still get paid. No heroics, no drama — just a clean entry plan and a calm exit plan.
Stay sharp,
— Geof
