6:30 AM EDT - The election results were pretty much as predicted by most pundits and, since a big GOP win was already in the market, shares had a 'sell the news' kind of session yesterday until the Fed announcement of a $600 billion QE2 programme at 2:15 PM. That larger than predicted amount buoyed equities and they finished at 2010 highs on the DJI and COMP and near one on the SPX. Further, the Fed will buy principal returns of securities on their balance sheet, amounting to about $75 billion monthly. Predictably, this dramatic and unprecedented further debasement of the Dollar resulted in a new low in the December dollar index futures (DX) to below 76 and a surge in December gold futures (YG) to 1366, as this is written. If the October new jobs report on Friday rises above the predicted 60,000 in the private sector, a blow off near term top as high as 1220 could ensue. Entering or holding any option position other than the GLD strikes already held is inadvisable before Friday.
Rolled up the GLD Jan 2011 130/135 put spread to 135/140 today for a credit of 0.95. If we get past 140 before Jan, I'll roll the Jan 2011 spread to a Jan 2012 140/145. Cheers
This is an alert that it's getting close to another roll up in the GLD strategy. I'm now in a bull put spread in the Jan 2011 135/140 strikes after rolling up from 130/135 for a nice credit. When (and, of course, if) GLD hits 140, I'll roll into the Jan 2012 140/145 strikes. That ought to generate a very nice credit. I'll post the result after I make the trade. Cheers
Hi folks, For those who have been following the progress of the long term GLD strategy I've been using, this is an update. I've been in a Jan 1011 bull put spread at the 135/140 strikes. Since there is only one month remaining for gaining success in this position, I rolled it yesterday into the Jan 2012 strikes for a net credit of 0.80. I closed the Jan 2011 for a debit of 1.95 and opened the Jan 2012 at the same strikes for a 2.75 credit. This has proven to be a personal ATM over the last several years. Your comments and questions are encouraged. Good trading to all.
Hi folks, For those who have been following the progress of the long term GLD strategy I've been using, this is an update. I'm currently in a Jan 1012 bull put spread at the 135/140 strikes. I rolled into it in December from the same strikes in the Jan 2011 contracts for a net credit of 0.80. As the chaos in North Africa escalates, gold, and the GLD have been surging and are approaching all time highs. GLD is about 138, as this is written; when (and if) it hits 140, I'll roll up via a butterfly to 140/145 spread for another credit. The beat goes on..... Your comments and questions are encouraged. Good trading to all.
Hi folks, For those who have been following the progress of the long term GLD strategy I've been using, this is an update. When GLD hit 140 yesterday, I rolled up via a butterfly from a Jan 2012 135/140 bull put spread to a Jan 2012 140/145 bull put spread for a credit of 0.45. The beat goes on..... Your comments and questions are encouraged. Good trading to all.