Gold ETF (GLD) – Gold Reclaims Safe Haven – March 16th, 2020
Bullish – GLD $143.28 – Gold Bullion
The S&P 500 (SPY) ended the week on a strong Friday afternoon rally after one of the worse weeks since 1987. With an emergency rate cut on Sunday, futures have sold off heavily, suggesting the limited effects of monetary policy. As local governments scramble to shut down cities to contain the virus, investors continue to struggle with evaluating the expanse of the downturn. We expect this next week to bring more volatility and clarity to the end of this quarter.
GLD Trade Idea:
On CNBC’s OptionsAction show on Friday, Carter Worth suggested that the decline in Gold was a temporary pullback in a larger bullish wave. GLD declined despite safe haven demand during a selloff due to liquidity issues. Expecting GLD to rally, Tony suggests buying a Mar/June 142/150 Call Diagonal @ $6.65 Debit. As of Friday’s close, these calls were trading at $7.06 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: GLD OptionsAction Video
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