TheOptionPlayer.com sets up a Gold Trust Shares ETF (NYSE: GLD) short-term (44-day) option strategy (based on Wednesday’s closing quoted bid/ask mean)
Investors could simultaneously:
The difference between funds received and paid out is a $.55 per share credit which we keep if the Gold Trust Shares ETF closes below $124 on Friday May 19th but immediately execute a trade adjustment if it appears the price will end up higher. If the price gaps higher open the trade using higher strike prices. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
Why we recommend it:
As seen in the chart below, gold has been trading range-bound near a firm resistance level the past few weeks. Investors had sold off stocks and invested the funds into gold and bonds over uncertainty about Trump’s legislative agenda and possible higher interest rates. It is reasonable to expect a rotation back into equities if investors choose to bid up stock prices during the upcoming quarterly earnings season. The Gold Trust Shares ETF (GLD) has not been above our target since last October and there is a strong probability that the Gold Trust Shares ETF will be below the target price at the May monthly option expiration date.
52-Week High: $130.52
52-Week Low: $107.34
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.