While history has shown us that there shouldn’t be much correlation between the stock and commodity markets, the current inter-connectedness between the two at the moment is still very evident. We’re still seeing large, intra-day and intra-week price swings, most of it coming on the heels of stock market moves. 

We’ve received some questions recently, asking for more details on one of the most effective and profitable investment strategies that you can use in a market like this. It’s called put option selling.

If you know how to play the volatile nature of the commodity sector, this article is not for you. Lee Lowell of the Smart Profits Report gives three reasons why commodity investing has changed for the better, and how to profit from them.

Put option buying has become a popular bearish investment strategy this year. But Lee Lowell says the market sell off also means some companies are trading at fire sale prices. He says put option selling is a great way to buy your favourite stocks at the best price. And the best part is you get paid to do so.

Is nowhere safe? Even physical assets – which are usually considered a safe-haven from stock market turmoil – have fallen sharply in the last month. Only gold and silver have held up against the tide…just. Commodities specialist Lee Lowell says there will be plenty more volatility in the weeks to come. But he says those who do not join the panic selling will win out in the end…

Lee Lowell at The Smart Profits Report says commodities are continuing their late summer swoon. Crude oil, natural gas, gold and silver have all taken heavy losses since mid-July, when the dollar began to rally. But like a lot of the contrarian investment experts we have published here on Contrarian Profits Lee says these commodities are oversold right now. A sharp rebound could be just around the corner…

Gold prices bounced back above $800 an ounce yesterday. According to Indian commodities news site Commodity Online, investors bet that jewelers will purchase cheaper supplies of the metal after the dollar consolidated recent gains.

Gold futures for December delivery rose $13.60 to $805.70 an ounce on the Nymex. Silver also traded higher, hitting $13.217 an ounce.

Lee Lowell at The Smart Profits Report reckons the metals are extremely oversold. He expects gold and silver to trend higher if the dollar sells off…

Oil prices may have dropped off their record highs in recent days, but don’t be fooled says Lee Lowell in The Smart Profits Report. The black goo wants to hit the $150 mark. The Iran situation is fragile, and dollar gains are likely to be short term…