Tuesday, November 2, 2010

QE2: $500B or $2T? Using a gold ETF to ride the volatility


Gold is still in an uptrend. If the Fed disappoints tomorrow, stocks will head south. If the Fed does too much QE (as in $2T or more), then gold will zoom, as the US dollar will continue to sink.

Here are straddles and strangles for November for GLD, the most popular gold ETF. These allow an investor to profit either way, as long as the underlying moves the necessary amount.

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