Stock, Option and Futures Trading
GLD Support – Jan 153 Calls
GLD is sitting at the .618 off the $128 low and the 50% off the $113 low. It is also bar 233 from the 1/27/11 low. If GLD takes out the high of today tomorrow the Jan 153 calls looks good. The calls closed today at $1.80
The stop would be .35 cents lower than the low of today so it is a 1 bar stop. If GLD takes out the low of today before taking out the high then we would skip the trade but still watch GLD for a set up soon.
PS> CDE is another way to play it.
PSS> When buying calls like this on a 1 bar reversal the odds are higher we gets stopped but the risk is lower. Another way to play it would be to wait a few days for GLD to go up then come back down and buy it on the retrace. The problem with that is if the move up is large the stop becomes large using the low of today meaning; if GLD spiked up to $156 then pulled back to $154 and you entered there you would be entering 4 points higher thus you would have a bigger stop than entering at $151