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Home › Forums › Swing Trades › Parabolic Short in GLD
Gold is overbought on multiple timeframes…. up 7% in 10 days and up 5.25% in 5 days. This will also be the third or fourth day in which the metal has moved above it’s bolligner bands, and it’s coming into price resistance from last year.
This could be *the* bottom in GLD but right now it’s running too hot and offers good risk/reward to the short side.
Here’s the trade:
Simple bet, sell call spreads and scale in. If GLD gets above 120 we’ll roll out to April.
sitting on hands waiting for possible roll….
If gold wasn’t parabolic yet, it certainly is now.
We are going to roll the trade out and up, and double size.
Buy to close GLD Mar 118/123 call spread @1.97
Sell to open 2x GLD Apr 126/131 call spread @0.96
So we’ve basically entered tier 2, with intent to sell more spreads at 1.50 on the same strike.
If the spread value drops to .50, scale out half.
Very nice gap down today. GLD off 2.5% and we can close this for profits.
Buy to close GLD Apr 126/131 call spreads @0.11 or lower