Trade Alert – (GLD) May 4, 2012

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.

Trade Alert – (GLD)

Sell the SPDR Gold Trust Shares ETF (GLD) June $160 Puts at $3.40 or best

Closing Trade

5-3-2012

expiration date: 6-15-2012

Portfolio weighting: increase from 10%

($10,000/100/$3.40) = 22 Contracts

Despite getting the best “risk off” conditions in months, gold can’t seem to development any downside momentum. We did catch a move in the downside of as much as $40, but all of that profit was eaten up my time decay in the options. These instruments have to work fast, or they don’t work at all. So I am moving to the sidelines here and taking a loss. That works out to 2.32% or $2,320 for your notional $100,000 portfolio.