DailyPlay – Opening Trade (GLD) – March 5, 2025

GLD Bullish Opening Trade Signal

Investment Rationale

Gold prices have recently reached new highs, driven by macroeconomic, geopolitical, and market-specific factors, reinforcing their role as a safe-haven asset. After nearing the 3000 level, gold futures pulled back to key support at the mid-October high before rebounding with strong momentum. SPDR Gold Shares ETF (GLD) followed suit, bouncing near 261, with upside momentum suggesting a potential retest of the most recent high in GLD of 272.32. Meanwhile, the CBOE Volatility Index (VIX) has remained elevated near the upper end of its range, holding around 20 for an extended period, implying that market concerns are unlikely to fade in the near term.

GLD – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 Contracts GLD April 4 $269/$260 Put Vertical Spreads @ $3.00 Credit per Contract.

Total Risk: This trade has a max risk of $1,800 (3 Contracts x $600) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $600 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on an ETF that is expected to continue its bullish trajectory.

1M/6M Trends: Bullish/Bullish

Relative Strength: 9/10

OptionsPlay Score: 91

Stop Loss: @ $6.00 (100% loss to value of premium)

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Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Tuesday ‘s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

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