Wednesday, May 12, 2010

Gold is on the rise

No confidence that more loans will resolve the issue of too many loans in the Euro Zone.

Gold is the play of social instability.

Selling GLD Jul 10 $118 puts for $4.5 and buying $115 GLD Jul 10 puts for $2.9


Lockstep said...

Gold outperformed in the recent market down draft. The position looks very strong.

Lockstep said...

This position looks very safe to hold until expiration a few weeks from now. But of course we will continue to watch it.

Current prices...

$118 put $1.23
$115 put $ .66

Lockstep said...
This comment has been removed by the author.
Lockstep said...

GLD closed at $116.67 at option expiration 7/16.

$1.6 credit at initiation

At close the $118 put was worth $1.23 (-$1.23)

The $115 put was worth zero.

I made a net $.37 on the position.


Gold is good.