Stock, Option and Futures Trading

Stock, Option and Futures Trading

GLD Puts- SEPT 160

August 11,2011

Everyone is saying buy gold but if you look at the chart we are at the 4.250% extension off the 2006 high. A pullback to $120 is possible here on GLD. Right here we would give it to $180 for the stop. The risk of the option IS the premium of the option. To short it here with a stop at the prior high would be $7.50 so we are risking $3.00 buy purchasing the puts rather than shorting the stock. So our risk is 50% less using the puts.

Happy Trading,

http://www.eMiniSchool.com

 

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