Wednesday, December 9, 2009
Update on that bet against gold
In a post last Thursday ("Buying a lottery ticket to bet against gold") I mentioned buying a few puts on the gold ETF GLD. Those puts I bought were the Jan 10s with a strike price of 108, GCZMD.X. I got them at $0.74 and they closed yesterday at $2.65, so they're up about 350% since last Thursday. So far, so good for Buffetteer17's idea. When to sell is another question.
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4 comments:
When to sell is another question.
Any profit is a good profit. Bull, bears, pigs.
In general the (longer term) trend is not your friend on that one -- AU is still in an up channel, and other than that (slightly dubious) jobs report, there seems little fundamental reason for the dollar to strengthen. Which is not to say this correction can't and won't go a bit further.
It would be hard to argue with at least taking your cost off the table. Or 1/2 the trade especially considering it is nearing the last 30-45 days of time premium which will start to erode rapidly if GLD does not continue to tank.
I'll take profits on half the position and keep a close eye on it. I also agree with you about buffetteer (sp?) being among the top notch members in the community.- I'm thinking of following him into JAKK
Thanks for the input, folks.
JAKK doesn't interest me. That doesn't mean it's a bad stock, but it doesn't interest me. These days I'm looking more for companies that can be potential five- or ten-baggers within the next five years.
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