February Gold is up $8.30 per ounce this morning at $1131.30 as I write. The included chart shows that gold is still involved in a steep correction off its historical highs. The directional movement indicators are bearish and the ADX line is still declining suggesting to me that the correction is not over for gold yet. Over the past several days, February Gold has found support right along the brown 40 day exponential moving average in the $1115 to $1120 area. The commentary from the Fed following their yearend meeting, later today could move this market in the short run. For now, we will keep our current positions.
Long 2 February Gold ($960 strike) put options at $10.40 each.
Long 2 February Gold ($970 strike) put options at $10.60 each.
Long 1 February gold ($1270 strike) call option at an average cost basis of $5.00 per ounce.
(February Gold options expire in 41 days).
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Long 1 April Gold ($1210 strike) call option at $33.00.
Short 2 April Gold ($1300 strike) call option at $17.50 each.
Long 1 April Gold ($1275 strike) call option at $17.80 per ounce.
Short 2 April Gold ($1400 strike) call options at $9.90 per ounce each
Long 1 April Gold ($1375 strike) call option at $11.80.
Short 2 April Gold ($1500 strike) call option at $6.90 each.
(April Gold options expire in 99 days).
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.
