Position Updates

This market is being very resilient and any selling is being bought. Today for the first time in a long time the VIX with below $14, making it very difficult to find attractive option spreads. But with low volatility I was able to take off my RUT butterfly and my XOP strangle. Both did very well, and I also added a GLD BWB, but with this low vol market I’m keeping my position small.

GLD as been in a choppy range for quite some time with no real trend in place. To top it all vol on GLD is very low, with premium at a not so attractive level. But I have a directional bias on GLD that is neutral to bullish. If you notice the symmetrical triangle on the chart, we have been up against the downtrend line several times over the last few month. We broke once with a retracement, now price has broken out of the downtrend line and is retracing back to the downtrend line. My thought is that we lift off the downtrend line back above 160 or so, if we get there I think we will see some buying lifting gold back into a trend. But with the type of spread I did its ok to be wrong, just not too wrong!

 
 

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