Take Big Profits in Your Gold Call Options
Let’s bank quick profits and sell our remaining gold position in this trading service. Upon receipt of this special alert for ETF Trader’s Edge, sell the GLD April $109 calls (GLD160415C00109000) that last traded at $7.05.
We were fortunate to be able to see the rebound and ride gold higher but we may face some resistance ahead. Gold seems to be firmly in overbought territory, so now would be a good time to sell. In fact, we believe gold stocks have run so far so fast they are poised for a breather. To take advantage of this short-term pullback to work off overbought conditions and to fill some gaps left by this strong rally, we want to buy ProShares UltraShort Gold Miners (GDXS) and the GDX March $17.50 puts (GDX160318P00017500). We need to be active in this volatile market environment, since conditions can change quickly and opportunities won’t last long.
Sell the GLD April $109 calls that last traded at $7.05.
Buy ProShares UltraShort Gold Miners (GDXS).
Buy the GDX March $17.50 puts that last traded at $1.06 and expire March 18.
Best,
Doug and Tom
Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
