We were able to liquidate the February Gold $1175/$1225 ratio call spread at about $11 per ounce.  That will result in a loss that I will outline in Friday’s comment.  But at least that potential risk is off the table in case gold blasts off some more over the next several days.  And don’t forget that we locked in a profit on the February $1100/$1130 call spread today as well.  I don’t mind gold rallying, I just don’t want it to get ahead of itself too fast, because that affects our ratio spreads.  Our regular vertical call spreads, like the February $1140/$1180, 1*1 spread,  work just fine under this same scenario.  So we try to eliminate the unlimited risk piece and keep the limited risk trade that is making money.

I will be writing to you on Friday.

 HAPPY THANKSGIVING!!!!!

 David Hall

The information and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness. The risk of loss in trading futures and/or options can be substantial. Each investor must consider whether this is a suitable investment. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results.

 This newsletter is not intended for dissemination to the public without prior approval from David Hall.