I decided to open a credit spread on GLD today as I saw Gold hit a high this morning and then sell off a little bit as the day moved on. It looks like GLD has probably hit its upper resistance at 122-123 level.
I'm trying to take advantage of these inflated option prices as volatility and fear is pretty high right now.
I opened the following spread which has 8 days left till it expires. I feel pretty confident GLD will not break 125 over the next 8 days, and a possible 12% return for 8 days was too good to pass up.
June 2010 GLD 125/126 Bear Call Spread for a ROI of 12%
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