The darling trade has suffered quite some downside over the last 2 months as gold sold off to the 1610 level. The 1630 level provides stronger support and the potential case for a bottom. If these levels don’t hold be cautious. Momentum is waning but in the past these were the spots where the market could pop. We’re currently holding the May gold 1690/1710 call spread which expires April 25th. We bought the spread for $550, plus fees and the screen shows it last trading at $280. That’s almost a 50% depreciation of value but depending on your risk profile hanging on for the next 9 days might make sense. If gold makes it to 1696 the trade would breakeven.
June Gold Weekly Chart
Series 3 Licensed
Michael Rataj discovered an interest in financial markets during a career in the mortgage industry. He made the transition to the futures markets after realizing the impact the markets have in every facet of business. Michael joined RJO Futures and uses his skills as a trading consultant to manage risk for his clients. Michael focuses on options trading for their staying power and limited-risk type trades, but trades futures depending on the client's appetite for risk and portfolio size. He beli.... Read More
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