Stock, Option and Futures Trading
GLD Puts- SEPT 160
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.