Just went Long the GLD 170 November Call Options

I just went long the November GLD 170 Call Options at 3.30.  I think gold is about to bounce back up to the old highs like a boomerang.  We are still in the very favorable seasonal time frame for precious metals.

Yes, September was a disaster for the precious metals which is astonishing since it is usually a superb month statistically.  But now I think gold is kicking the dust off its boots and wants to play catch up topside again.

There is still a gap fill at 173 and change on the GLD.

I still think gold has a good shot at blasting up and through 2000.  Whether or not this happens by the end if this year is unknown, but gold does seem to have a habit of delivering Christmas presents right at or near the end of the year.

bullion-bars-gold-bars-300x225As long as this gold bull is still alive trading call options on the GLD may be a nice way to go if can get good entries on massive weakness.  Why? Because the predominant bias is still UP until further notice…

I will have to do another update on the long term chart of the US dollar index soon.  I think a lot of people were expecting the Dollar to stage a huge upwards and sustainable rally.  This does not appear to be the case now from what I am seeing.  It was on the verge of doing so and starting a new bull run, but most recently it really screwed up the bullish scenario.

Posted in Gold Market, Stock Option Trade
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13 comments on “Just went Long the GLD 170 November Call Options
  1. ed says:

    Tomorrow (Wednesday) we will see a reversal and continuation up

  2. Geoff says:

    hope so for sake of those following this post. if you bot the gld 170 nov call at 3.30, you are currently underwater by about 20%.

  3. ed says:

    Actually I was referring to stocks

  4. Fred says:

    I believe that GLD rally is soon ending despite great volume on the up side. My analysis is available on my blog today http://www.stockerd.com/blog/category/daily.

  5. Tom Tom says:

    Thanks for the comment Fred. I agree the volume has not been too exciting on GLD on the recent advance. But I still think there is more up left into end of year.. I also think the UUP is going to drop like a rock again and that should be part of the reason for GLD up again…

  6. Fred says:

    I rather observe bullish behavior in UUP. I expect that days like today will be not-so-unusal for UUP. There is a flight for safety and US$ is yet better than Euro. The USD$ down and Gold up was an obvious (and crowded) trade months ago. Winds have changed. QE3 might not be that easy to pass politically in today’s environment. Who would buy US debt if dollar sank ? US can’t screw its lenders (China) very long.

  7. Tom says:

    I have been watching the UUP. The monthly chart of UUP looks like it wants to work into a longer term bullish trend. But the dailies are quite confusing. It had in recent months a huge spike up rally… but then was not able to hold the rally and did almost a 100% downward retracement.

    Now it rallies again a little bit… it just seems like any rally is just running on fumes.

  8. Fred says:

    Following up on the previous GLD comment, I just made another post at http://www.stockerd.com/blog/category/daily.

    As per UUP, it is mostly volume that makes me think it is bullish. I observe more volume on the upside than on the down side at multiple degrees. I agree that price chart is a bit messy but I keep a bullish bias. Will post one day.

    Beside technicals, I believe that political environment no longer favor easing and bailouts. Bernanke is likely to be blamed for perceived inefficient QE1 and QE2. Hence, I doubt there will be a QE3.

  9. Tom says:

    Thanks for the follow up Fred. Well certainly anything is possible. I still favor the bullish upside bias in sp500 and Gold for now.

    I think the one fact about this market that no one can deny since March 2009 is that the market has repeatedly been a ‘buy the dips’ type of market regardless of what the bad news was… All the horrible Europe News has consistently been a buy the dips opportunity. I we do not get QE3, then well we will have to see if the market can still run higher without training wheels…

    I see the current compressing triangle in sp500 resolving to the upside perhaps on, before or into Thanksgiving holiday week.

    As far as QE3, I cannot venture a guess if we will get it or not. But at this point I think the election cycle is working to the markets upside favor for now.

    There is now a weekly bullish triple P formation on the monthly MACD histogram. The market is now presented with the opportunity to confirm this monthly potential buy signal in the month of December… I think it will do it, but we shall see in due time…

  10. Geoff says:

    So how is the Nov 170 gold trade working for you?

    QUOTE: I just went long the November GLD 170 Call Options at 3.30. UNQUOTE

  11. Tom says:

    It went great. Exited at 11/11/11 at 4.50 (+36%)

    At Option high price went as high as 6.30 on 11/7 and 11/8 for 90% max return.

  12. Geoff says:

    must have been something mystical about 11/11/11 – – nice that something finally worked out for you

  13. Geoff says:

    too bad you did not tell your readers (what remain) what you were up to and your thinking around selling. . . . . transparent posting, and all that

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