Thursday, January 21, 2010

Options for the GLD ETF, February, June, and 2010

The GLD ETfs is the most popular gold ETF. It returned 25% in 2009:


Is gold going up or down? Here are straddles for February and June of 2009, and January 2010. These allow the investor to profit either way, as long as gold moves the required amount.



We used StraddlesCalc to compute the maximum moves required for profitability. If GLD moves that amount by the date indicated, the position will be profitable.

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