23d • 💡 Trade Ideas & Analysis
How to Trade Gold Right Now (3 Options Strategies)
Not stocks. Not crypto. The trade of the week is in GOLD! It rallied hard on dovish Fed expectations, U.S. dollar weakness, and safe-haven demand. GLD finished the week around 331, setting a fresh all-time high!
IV Rank is 31. That means volatility is elevated, and options premiums are finally rich, which makes this an attractive environment for premium-selling strategies. Here are a few ways I'm trading it strategically to increase my probability of profit:
GLD Call Ratio Spread:
- Premium Collected: $123
- Max Profit: $623
- Probability of Profit: 87%
GLD Short Strangle:
- Premium Collected: $389
- Max Profit: $389 (credit received)
- Probability of Profit: 70%
/GC Short Strangle (for larger and more aggressive portfolios seeking higher leverage using futures):
- Premium Collected: $4,510
- Max Profit: $4,510 (credit received)
- Probability of Profit: 72%
- High theta: $116/day!
As always, active management is required, and your position sizing is critical.
1
2 comments
How to Trade Gold Right Now (3 Options Strategies)
skool.com/tge-free-4382
A community for serious traders who want to learn how to be profitable trading stocks/options
Leaderboard (30-day)
1
+66
2
+28
3
+20
4
+20
5
+15
Powered by