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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

The Cherry Bomb
September 19 2019
GLD has taken a nice two-week vacation from its massive summer rally.  Not even the excitement of a spike in oil could push GLD higher, and yesterday’s widely expected rate cut by the Fed couldn’t either.  The rate cuts here and in Europe had a “risk-on” effect of sorts, as money moved back into stocks and out of the safety of gold.  But GLD could still have some supporters betting on the bullish side, while bears could keep pressure on GLD that’s still trading near 5-year highs.  The result is that GLD might not go anywhere for a while.  The market still sees some potential excitement, though, giving GLD a 59% IV rank.  That makes it a short premium candidate.  If you do think GLD might trade in a wide range for the next month or so, the short iron condor that’s long the 134 put, short the 136 put, short the 145 call and long the 147 call in the Nov weekly expiration with 43 DTE is a neutral strategy that collects a credit 1/3 the width of the strikes, has a 72% prob of making 50% of its max profit before expiry and that generates $.69 of positive daily theta.



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Tom Sosnoff
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