Thursday, December 29, 2011

GLD


GLD looks ugly and spike in volume today. Taking the contrarian trade:

Short GLD Feb12 130 Put for $0.75. Tried to do 10 contracts, only filled on 7.

6 comments:

  1. Actually no spike in volume but still like the trade.

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  2. Last post - just filled the rest of the contracts. Will update again when position is adjusted or closed.

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  3. Well very coincidental, last night I entered an order in to buy 1 GLD JAN 151 straddle for $6.50. The GVX index is mid range, the commodity whether using futures, GLD, or the GDX minders index is all at technical levels that suggest a bounce or big failure. So just going small as it makes me follow along rather than looking back retrospectively and trying to see what I might have done. Having skin in the game makes me follow my assumptions closely. If I don't get a sharp move in either direction by the end of next week I'll take the loss and get out.

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  4. When I look at the GLD 3y D chart I see areas of possible resistance around $155 (previous support in Oct. '11 and areas of possible support around $145 (May-July '11). Based on that I would not be surprised to see GLD trade between $145-$155 for awhile which would not be good for your position. What technicals do you see that lead you to be believe it will have the big move up or down you are looking for?

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  5. I ended up closing that long straddle out on Friday for a $50 loss. I don't like being long time premium and after only two days I didn't like it enough to hold any more. I can't post the chart in this comment section so I will email you what I was looking at.

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  6. Thanks - I see what you were looking at on the chart.

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