Calendar Spread In Gold
The weekly gold chart is listed below.
Calendar spread in gold. In the example being used the primary profit engine is time theta decay. Currently gold appears to be going through a pullback and possibly a major correction based on price action in the dollar and it could setup for a possible longer term entry in time. In the example being used the primary profit engine is time theta decay.
Calendar spreads can be utilized in longer term trades as well as a cheaper surrogate for equity ownership. The trade construction consists of selling the gld october weekly 134 puts expire 10 22 and the simultaneous purchase of the gld november 134 puts expire 11 19. However calendar spreads can be utilized in longer term trades as well as a cheaper surrogate for equity ownership.
Since i expect the price of gold to decline due to a subsequent bounce in the u s. Since i expect the price of gold to decline due to a subsequent bounce in the u s. Dollar i am utilizing a bear calendar spread.
Dollar i am utilizing a bear calendar spread. Using a long term calendar spread to trade gold. Currently gold appears to be going through a pullback and possibly a major correction based on price action in the dollar and it could setup for a possible longer term entry in time.
However calendar spreads can be utilized in longer term trades as well as a cheaper surrogate for equity ownership. The futures spreads page shows prices for spread quotes as traded by the exchange a spread is a contract to buy or sell multiple futures or options contracts at one time rather than buying or selling individually. However because we used puts that were slightly out of the money this trade does have a very slight short bias if gold were to decline.
The trade construction is a put calendar spread. Currently gold appears to be going through a pullback and possibly a major correction based on price action in the dollar and it could setup for a possible longer term entry in time. As is usual with trades that i post the passage of time is our friend.