TheOptionPlayer.com sets up a Gold Shares ETF (NYSE: GLD) short-term (31-day) option strategy (Based on Tuesday’s closing quoted bid/ask mean)
The difference between funds paid out and received is a $.54 per share debit maximum risk for this trade. The maximum profit is approximately $2.46 per share (or approx. 450%) if the Gold ETF moves higher prior to the option contract expiration date. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
Why we recommend it:
In the chart below the Gold Shares ETF (NYSE: GLD) started crashing at the end of April as investors sold off commodity assets to bid on stocks which drove some of the equity indices to new highs. Our recent market analysis discussed how the stock market was due for a pause. As quarterly earnings season winds down the bullish stock price surge has dissipated and you can see in the chart how gold is attempting a recovery bounce. The GLD ETF is bouncing off a support level after being oversold, plus downward momentum is fading fast and actually trying to turn bullish. Now appears to be an opportune time for a relatively low-risk GLD ETF trade with excellent profit potential. We are betting the Gold Shares ETF will follow through on technical signals and approach our $121 target price by the June option expiration date.
52-Week High: $130.52
52-Week Low: $107.34
Regular www.theoptionplayer.com subscribers can attest to the preponderance of successful trades published on this website
The information presented here is for educational and informational purposes only, and this document is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful.