I went ahead and sold the SPDR Gold Trust January 2010 GLD 120 call options for a gain of 157% in under 3 weeks. I had gone at a premium of $107 per contract and I sold the call options today at a premium of $275 per contract.
I do think that the price of gold is going to appreciate further. But I also expect a small retracement in the interim period. When that retracement comes, I am going to get in again with a long position. As long at the USD FOREX is trading lower against all the other currencies, gold bullion is going to remain strong. So, it is a two-pronged attack — go short on the USD FOREX trades and go long on Gold.
I think gold reached a 52-week high today (but I am not checking).
Here is an interesting article from an expert of the relationship between .
As things stand now, this will be te strategy for some time at least.
P.S. I am running out of gold picture ideas, so I may start recycling some old images!
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