CNBC’s Options Action Trade for March 6th, 2017 – SPDR Gold Trust (GLD)
On Friday’s CNBC’s Options Action, the crew analyzed the performance of Gold since their bullish call in Dec. Having rallied 8% since bottoming around $107 in December, gold has paused near its 50% retracement level. Additionally, gold has bounced lower off a bearish trendline and broke a short term bullish trendline, suggesting bearish moves lower. Coupled with a March rate hike which is supportive of the Dollar, provides additional downside pressure on Gold. Michael Khouw suggested buying an May 116/07 Put Spread for a $2.25 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action