blog.kerdos.com

A Hedged Gold/GDX Trade

As we mentioned before , we think the gold price is going to trade in a range and the best strategy is to sell naked strangles on GLD and GDX.
e.g. short GLD June 95 calls and short June 80 puts. If GLD ends anywhere within that range, you will get to keep the premiums, and gold fanatics can go buy some physical gold to caress, admire, and cuddle up to.