August 24, 2017

Potential Bull Put Spread Gold (GLD, GDX, NUGT, DUST)

Volatility continues to amaze me. We continue to witness historic lows almost every day. Last week I even added a bull put spread in UVXY to take advantage of the short-term “very oversold” state. So far, it hasn’t worked out, but as subscribers know, UVXY is still trading comfortably  above our short strike.

Gold and all its variations are also on my radar.  All four ETFs offer some interesting options plays. Of course, my favorite, particularly for those with smaller accounts are credit spreads, more specifically, bull put spreads.

As most of you already when a highly-liquid ETF reaches a short-term extreme (as indicated by the chart below) I like to use a high-probability trade to take advantage using various credit spreads, like bear call spreads, iron condors and bull put spreads. In this case with 3 out of the 4 Gold ETFs in a short-term “very oversold” extreme I prefer to use a bull put spreads with a probability of success around 80%.

Subscribers stay tuned for a potential trade alert tomorrow.

As for the rest of you, I will go over a few potential trade scenarios here tomorrow.

high-probability options strategy

If you are a believer in a statistical approach towards investing please do not hesitate to try my options strategies. I use simple mean-reversion coupled with probabilities for each and every trade. Give it a try, it’s free for 30 days.

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Also, due to the enormous amount of requests over the past week I have decided to keep my annual deal available for several more days. Thanks again for all of the support.