"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 5 hours Foreign Investors Losing Interest In The U.S.
  • 6 hours Chinese Police Bust $1.5B Crypto Gambling Scheme
  • 7 hours Can Artificial Intelligence Compete With Real Doctors?
  • 8 hours UK Stocks Bounce Back From Worst Selloff In Years
  • 9 hours Geopolitical Uncertainty Weighs On Global Markets
  • 11 hours Gold May Still Be On Its Way Down
  • 13 hours Bionic Cells: The Future Of Solar Energy?
  • 1 day The Biggest Winners Of Q2 Earnings Season
  • 2 days Experts Suggest A Gold Shortage May Be Looming
  • 3 days The World Is Drowning In $247 Trillion Debt
  • 3 days Tightening Immigration Policy Could Hurt The Tech Sector
  • 3 days The First Bitcoin ETF Might Be Just Months Away
  • 3 days U.S. Rent Costs Hit All-Time High
  • 3 days European Allies Plan To Continue Trade With Iran
  • 4 days Bitcoin Bounces Off Key Resistance Level
  • 4 days These 3 Industries Are Immune To The Trade War
  • 4 days Is This The Answer To The Looming U.S. Healthcare Crisis?
  • 4 days UK Regulators Hit Facebook With £500,000 Fine
  • 4 days Tesla’s U.S. Tax Credit Coming To An End
  • 4 days Ex-Goldman Banker Caught In A Billion Dollar Fraud Scandal
The Biggest Winners Of Q2 Earnings Season

The Biggest Winners Of Q2 Earnings Season

The second quarter of 2018…

These 3 Industries Are Immune To The Trade War

These 3 Industries Are Immune To The Trade War

U.S. President Donald Trump has…

Investors React To Escalating Trade War Drama

Investors React To Escalating Trade War Drama

Stock markets gained a bit…

Stock Barometer

Stock Barometer

Stock Barometer

Stock Barometer is completely independent. We have never and will not ever accept compensation from any company whose stock we recommend. Our goal is to…

Contact Author

There's Gold in Them Thar Hills

9/12/2014 6:17:30 AM

Good morning Traders,

Since we updated our option position on oil yesterday, here's an update on our GOLD position (based on our research).

If you recall, back on 8/21, we made the following recommendations:

Gold Options Table

Here's an update to the value of those options - both around 100% in returns!

Gold Options Table 2

And here are the November PUTS:

Gold Options Table 3

What about the future of gold?

Well, as we've shown earlier, gold is breaking down but the majority is positioning for it. Here's one of our indicators which we used to get into the position:

Gold to Gold Options Volume Ratio Chart

Gold is making a serious run at the lows here, and you would expect it to retest the lows here. As it does, volatility will pick up and the options will increase in value. If this indicator turns back higher, it looks like we'll have to wait a little longer for the larger crash in gold, but the conditions are still ripe - so gold could still break lower.

On the stock market, one of the key things happening right now is that bonds are selling off and stocks are not moving higher. That's bearish for stocks. They should be taking off. But if there are no more buyers, and the individuals have moved into the market (per our indicators) - then a selling vacuum is created. We're still cautious on stocks.

Regards,

 

Back to homepage

Leave a comment

Leave a comment