GLD Puts Update

Friday's GLD Trade Idea, Puts Trade Idea: GLD Puts has already made a nice double digit gain even using next month's monthly expiration which is what I prefer for a move down toward the $110 area, but I know some of our shorter term traders already have cashed in on the gap down this morning.

I wanted to give a quick update for any short-term traders and generally.

 For very short term traders using weekly puts, etc. this 1 min positive this morning on GLD's gap down may be something we need to watch, I suppose like some of you have already done, profits could be taken and if we get a gap fill, a new trade (put) could be set up.

I would not try to play a gap fill long, I think it's too much risk and too little reward.


From my perspective I chose a monthly (longer) expiration looking for a bigger move toward $110 for the tracking portfolio.

The 15 min chart suggests that's a very high probability, but today's gap at the orange arrow may be filled as the 1 min chart above this one is showing a positive divegrence building intraday. Longer term I'm looking for a move toward the blue arrow and that's why I like the longer monthly puts.

I though I'd get those charts out, but thus far there's no sign of a positive divegrence on the next timeframe of 2 min so it may just be a consolidation laterally, although in the recent past this market has been ruthless about filling gaps.

With a longer term perspective and monthly expiration puts in the tracking portfolio, I'm more interested in the move toward $110, but still a double digit gain for a few hours even with monthly puts isn't bad either.