Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Gold Hits a Short-Term Extreme Gold Hits a Short-Term Extreme

|Includes:PowerShares DB Agriculture ETF (DBA), DIA, EEM, EFA, EWY, EWZ, FXI, GDX, GLD, IBB, IWM, IYR, OIH, QLD, QQQ, RTH, SDS, SLV, SMH, SPY, SSO, TBT, TNA, TZA, USO, VXX, XL, XLB, XLE, XLF, XLI, XLU, XLV, XLY

*Over the short-term Gold (NYSEARCA:GLD) has pushed into ‘very overbought’ extreme which could trigger a trade over the next few trading days. If gold happens to move higher and thereby push further into ‘overbought’ territory I will most likely enter a trade over the next few days. As always, subscribers, be on the lookout for a real-time trade alert and tweet of the trade.

New Credit Spread Options Strategy – Beta

The market moved lower again today and the Russell 2000 (NYSEARCA:IWM) is now 4.3 percent below the 86 strike. I sold a vertical spread with 53 days left until August expiration for a $.34 credit and now the spread is worth approximately $.45. The two week rally that occurred during the latter part of June/beginning of July sent the price of my spread higher, but the recent decline has pushed the spread back to close to break-even.

Once July expiration passes theta (time-decay) will accelerate. If the underlying ETF trades around this area or moves lower I should be able to get out of the spread for a nice gain in the next few weeks. Stay tuned!

In the meantime, I am looking at initiating a spread on the VIX and possibly a spread on Gold. I will be discussing the potential trades in my upcoming weekend report.

*I will be offering my new Credit Spread Strategy after August Expiration so if you are interested please email me and I will save you a spot. I will be limiting the amount of subscribers. The cost of the new service will be the same as my High-Probability, Mean-Reversion strategy – $99 per month. Please do not hesitate to email me with any questions that you have.

The Strategy

Again, I like my new strategy because now both of my options strategies are working in unison. I am able to collect premium in the Credit Spread strategy while patiently allowing time decay to works its magic. And, while I allow the time decay to eat away at my credit spread I am able to play short-term extremes in the ETFs I follow in the High-Probability, Mean-Reversion strategy. Intermediate and short-term options strategies at work.

Just like diversifying a portfolio of stocks, you should do the same when investing with options – diversify your options strategies.

Here it is: the first trade in my new Credit Spread Options Strategy, officially named Crowder’s Credit Spreads. I will continue to go over the trade in full detail in the Free Weekly Options Report.

Market Mumbo Jumbo

Summary

SPY remains range-bound!

Nothing New Here: Not much has changed over the past few weeks - range-bound trading persists. I appears we could see the markets move sideways for a few more months. Are the summer doldrums already upon us? How long can SPY stay in this range of roughly $126 to $137? The question is, while I continue trading extremes in the HPMR strategy , how can I take advantage of the range bound movement at the same time. You guessed it – a credit spread! I will discuss this further in Weekly Options Report.

If you haven’t already, don’t forget to sign-up for my Free 30-day trial.

Also, for those of you who live on Facebook. You can access my daily info on the social network as well. Just click on LIKE.

Options Strategy Indicator – Overbought / Oversold Extremes

Stocks: DBA, DIA, EEM, EFA, EWY, EWZ, FXI, GDX, GLD, IBB, IWM, IYR, OIH, QLD, QQQ, RTH, SDS, SLV, SMH, SPY, SSO, TBT, TNA, TZA, USO, VXX, XL, XLB, XLE, XLF, XLI, XLU, XLV, XLY