![gold rush series are getting short gold rush series are getting short](https://www.laura-peters.co.uk/img/s/v-10/p239005571-5.jpg)
Indeed, GOLD’s movements are mirroring GDX with a recent climb above the 50-day. In surveying the top holdings of GDX, Barrick Gold stands out as one of the cleaner price charts. This offers the most potential upside because it lacks the diversification that went along with using GDX. The third and final choice is to buy gold stocks directly. Barrick Gold (GOLD)īarrick Gold (GOLD) stock chart with bullish breakout The risk is limited to $2.20, and I would shoot for a profit of $1. The Trade: Buy the June $34 call while selling the May $37.50 call for a net debit of $2.20. Toss in the low implied volatility, and that makes a poor boy’s covered call an easy choice. It sits at $37.28.ġ0 Stocks to Buy for Your $5K Robinhood Portfolioīecause of GDX’s chart’s somewhat choppy nature, I want to build a trade that profits from time decay and further bullish movement. Like GLD, I like using the 200-day moving average as the next upside target. The 20-day moving average is also now trending higher above the 50-day. It cleared the 50-day moving average last month and built a high base pattern that just completed with Thursday’s breakout. Virtually all of its listed options trade with penny-wide bid-ask spreads.įrom a charting perspective, GDX has a more mature reversal than gold prices. Like GLD, GDX also offers fantastic liquidity. At $36, GDX offers a far cheaper price tag than GLD, opening the door to other options strategies like covered calls or naked puts.
![gold rush series are getting short gold rush series are getting short](https://c8.alamy.com/comp/2H3JHAR/artisanal-illegal-gold-mining-in-ethiopia-2H3JHAR.jpg)
It tracks a basket of gold mining companies, offering a diversified bet on stocks that have historically moved in lockstep with gold prices. Source: The thinkorswim® platform from TD Ameritradeįor a higher beta alternative to GLD, consider GDX. Gold Miners ETF (GDX) with upside trend reversal