LD Lossdog Research
symbol

GLD

5 matching records.

Trade idea

GLD short puts with call protection

The trader is short GLD puts with a combined Delta of 50, which exposes them to risk if gold rises. To mitigate this, they sell calls with a Delta of 15 or 20, reducing their risk by 35%. This strategy is based on the idea that selling calls can offset some of the risk from being short puts, while also maintaining a capital-efficient position. However, if gold continues to rise, the calls provide no protection, and the trader may face losses.

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Strategyshort puts with call protection
Assetequity
ExpirationMarch 31st
Time horizonshort-term
Entry / triggershort puts with a combined Delta of 50
Target / exitreduce risk by 35% through the sale of calls with a Delta of 15 or 20
Invalidation / stopif gold breaks further, the calls have no protection
Speakeranonymous
Structure / legs
  • short March 31st GLD puts (one in the money, one out of the money)
  • sell calls against the position
Risks
  • If gold breaks further, the calls have no protection
  • Rolling out in time may reduce risk by 20%, but it involves entering an illiquid option series
  • The trader must stay in the March expiration and avoid rolling out to a less liquid series
shortequityshortGLDshort-term
high confidenceVerify in video at 16:00 ↗
Trade idea

GLD strangle

The speaker mentions selling a strangle in gold, indicating a short volatility strategy. The strangle involves selling both a put and a call option at different strike prices, aiming to profit from a range-bound market. The speaker's focus on volatility suggests that the trade is based on the expectation of limited price movement in the near term.

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Strategystrangle
Assetcommodity
Expirationnot specified
Time horizonnot specified
Entry / triggermarket volatility
Target / exitnot specified
Invalidation / stopnot specified
SpeakerScott Sheridan
Structure / legs
  • put
  • call
Risks
  • Market moves beyond the strangle's range
  • Implied volatility decreases
  • Liquidity issues
shortcommodityshortstrangleGLD
medium confidenceVerify in video at 20:09 ↗
Trade idea

GLD Put selling

The speaker sold puts in GLD (Gold ETF) earlier when gold was down, and now it's up $69, indicating a potential reversal. The trade idea is to capitalize on the upward movement by selling puts, expecting the price to remain above the strike price. The strategy involves leveraging the increased volatility around the Fed meeting, with the expectation that gold will continue its upward trend.

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StrategyPut selling
AssetETF
Time horizonShort-term
Entry / triggerGold price below a certain level
Target / exitPrice movement upwards
Invalidation / stopSignificant downward movement or market reversal
SpeakerScott
Structure / legs
  • Put
Risks
  • Market reversal
  • Volatility contraction
  • Liquidity issues
shortETFshortGLDshort-termput selling
medium confidenceVerify in video at 15:33 ↗
Q&A

What are your three favorite stocks to trade and why?

The speaker lists SLV, GLD, and MU as their favorite stocks to trade. They mention that these stocks are popular due to their liquidity and market activity. The speaker also notes that their choice of stocks can vary based on current market conditions and personal trading preferences.

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Actionable takeawayStock selection can vary based on market conditions and personal trading preferences. Liquidity and market activity are important factors in choosing stocks for trading.
GLDMUSLVMarket Outlook
high confidenceVerify in video at 00:14 ↗
Q&A

What is the ETF equivalent of a gold futures contract?

The ETF equivalent of a gold futures contract (GC) is 10 contracts of the ETF GLD. This equivalence helps traders understand the notional risk and contract size of futures contracts.

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Actionable takeawayTraders should understand the ETF equivalent of futures contracts to better grasp the notional risk and contract size.
futures/GCGLD
high confidenceVerify in video at 52:18 ↗