Gold and gold-related underlyings were hammered this past week, along with other precious metals.
The IVR for the go-to proxy for gold -- GLD (SPDR Gold Shares) -- has popped to >90, offering a premium selling opportunity that may quickly evaporate off of GLD sub-104 lows (GLD experienced a modest bounce in Friday's session, up .98% for the day).
A Sept 4 96.5/99.5 short put vert will garnish a .34 credit (POP 84%), which isn't fantastic ... . Since I like to hedge most of my positions (who knows, the price of gold may continue to collapse on dollar strength), an IC may be the way to go: a Sep 4 96.5/99.5/110/113 iron condor for .77 may do the trick, but a Sep 4 99/111.5 short strangle is the most attractive, going for 1.20, although you have to put up with the buying power effect which is much more onerous than that required to put on an iron condor.
Regardless of which set-up I go with, I'll be looking to take it off at 50% max profit ... .
The IVR for the go-to proxy for gold -- GLD (SPDR Gold Shares) -- has popped to >90, offering a premium selling opportunity that may quickly evaporate off of GLD sub-104 lows (GLD experienced a modest bounce in Friday's session, up .98% for the day).
A Sept 4 96.5/99.5 short put vert will garnish a .34 credit (POP 84%), which isn't fantastic ... . Since I like to hedge most of my positions (who knows, the price of gold may continue to collapse on dollar strength), an IC may be the way to go: a Sep 4 96.5/99.5/110/113 iron condor for .77 may do the trick, but a Sep 4 99/111.5 short strangle is the most attractive, going for 1.20, although you have to put up with the buying power effect which is much more onerous than that required to put on an iron condor.
Regardless of which set-up I go with, I'll be looking to take it off at 50% max profit ... .