Friday, August 26, 2011

Rebounding Gold?

Totally inadvertently TrashStock called the timing for gold's correction.  As of Wednesday night, though, Trashstock thought that the correction had been overdone, and sold his GLD Jan 12 130 & 140 puts Thursday morning, and traded them for a calendar spread consisting of GLD calls, Oct 11 170's and Jan 12 170's, in anticipation of something of a reactionary rally, coupled with hesitation about Bernanke's Jackson Hole, Wyoming talk.  Who knew (TS didn't factor this tidbit in) that GDP would be reported down this morning, which has added a boost to yesterday's rebound.

Incidentally, TrashStock has been using's site for tracking the spot gold prices - very useful. Also, this recent foray into the commodity to outlast all commodities has taught TrashStock that in a game with heightened volatility, positions closer to the money are probably more likely to produce results than those further afield.  The Jan 12 130's barely budged, though the 140's did return about 90%.


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