GLD and SLV

[Guest]

Any short term trade opportunities in GLD or SLV? I have a short term (at least until election) bullish sentiment, but am looking for thoughts, feedback.

Thanks,

[Guest Corto]

IMO opinion, GLD and SLV are some of the most manipulated instruments out there, short term. Long term, I think it is impossible to lose with physical gold and silver, and likely impossible medium term with GLD and SLV, but I hesitate to play those short term. The one thing I have been doing successfully is I have a core holding of SLV that I write ATM or slightly OTM weekly calls on.

[Guest]

i can relate to your thoughts, Corto.. Thanks!

Edited October 8, 2012 by dkny1321

[Guest]

GLD has been range bound for a while now but looks to be destined for higher prices? At least that's what everyone thinks (so everyone is correct?)

It's a crowded trade and inflation will pick up sometime, but when? Just like interest rates will eventually go higher, but nobody knows when so they keep buying bonds (another crowded trade). If I was putting money on the line it would be a short term calendar or IC on GLD with a longer term buttefly in the 180-185 range.

[Guest]

GLD has been range bound for a while now but looks to be destined for higher prices? At least that's what everyone thinks (so everyone is correct?)

It's a crowded trade and inflation will pick up sometime, but when? Just like interest rates will eventually go higher, but nobody knows when so they keep buying bonds (another crowded trade). If I was putting money on the line it would be a short term calendar or IC on GLD with a longer term buttefly in the 180-185 range.

Scott,

What is the strategy you describe called? Is the Butterfly a Long or Short butterfly (long meaning there is a short ATM straddle covered with long positions in the wings).

http://www.theoptionsguide.com/butterfly-spread.aspx

Thanks!