In my previous post on trading Gold (GLD), we discussed a “High Probability Gold Trade”, our thought process on that trade was right on and we are sitting with a significant profit. Now we have to decide to take profits, add to our position, protect the position with options (puts) or perhaps a combination of our choices.
Looking at the chart, you can see an upward trend line that we broke outside of regular trading hours. If we close today above the line with good volume I suspect our next target would be just shy of 126.00. There are 9 trading days left for the June calls and puts and with Gold on its recent highs we could see some volatility as we get closer to option expiration. I will look at the activity today to see if trading a put/call spread may be my next trade with GLD. Although I see additional upside potential, the 19JUN10 115 Calls are now quite expensive; I will look to close this position this morning.
