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Home › Forums › Closed Trades › GLD – 3 std dev LL
Setup: 3 std dev ll
Price: sub 120
Description:
So on the back of some hawkish Fed comments, gold gapped down. And it gapped below the 3 month trading range we’ve been dealing with. Momentum led to more momentum and soon enough we’re looking at the worst one-day move since 2013.
When a market breaks like this, fading the first move doesn’t make sense but fading the second does. We’re looking
So we saw a gap up that led to more selling and this morning we’re seeing a gap down. This feels like an exhaustion gap so this is a good place to initiate a position.
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
STO | GLD | 18 Nov 16 | 116 | Put |
BTO | GLD | 18 Nov 16 | 113 | Put |
Total Credit: | 0.55 |
Will add to the trade at 0.70 and 1.00
So this trade has done pretty well… there hasn’t been a massive retracement higher in GLD but instead the shiny metal has gone sideways for a while.
I’m going to close here and look to reenter if/when GLD hits 115 for the first time.
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
BTC | GLD | 18 Nov 16 | 116 | Put |
STC | GLD | 18 Nov 16 | 113 | Put |
Total Debit: | 0.25 |