GLD via /r/wallstreetbets #stocks #wallstreetbets #investing
Today we got probably the biggest sale on gold we’re going to see in a while. Gold has dropped $100 in the last 24 hours. Why? Because we aren’t getting stimulus anymore due to a vaccine that won’t rollout until mid/late 2021? Because the FED is going to hike interest rates now that the world is saved?
Obviously vaccine news is great but it doesn’t slow the boom in covid cases for the next few months and it definitely doesn’t mean we don’t need stimulus.
This is a classic example of the market overreacting and it’s the perfect time to sell premium and go long on PMs. Once stimulus talks start back up (and don’t forget the potential for a blue win in Georgia) gold is going to be right back on track – straight to the moon. I sold put credit spreads today on GLD and as soon as we start to gain traction I’m buying calls. Pick any date in 2021 and tendies are literally guaranteed.
*Note: I’ll also be watching miners (GDX). A vaccine will be doubly good for miners who can expand ops AND benefit from higher PM prices.
TLDR: GLD 176/173 put credit spreads 11/20
Submitted November 10, 2020 at 01:00AM by raptors902
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