DailyPlay – Opening Trade (GLD) – June 23, 2022

Bullish Opening Trade Signal

View GLD Trade

Strategy Details

Strategy: Long Call Vertical Spread

Direction: Bullish

Details: Buy to Open 10 Contracts July 15, 2022 $171/$176 Call Verticals @ $1.85 Debit.

Total Risk: This trade has a max risk of $1,850 (10 Contracts x $185 per contract).

Trend Continuation Signal: This is a Bullish trade on a stock that is experiencing a bullish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 9/10

OptionsPlay Score: 108

Entering the Trade

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

Please note these prices are based on the previous day’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. This will be reflected in the Portfolio tab within the OptionsPlay platform.

Investment Rationale

Gold has been hampered all year by a bullish dollar, and if it weren’t for the greenback’s strength, I think there were good chances that it would be up over $2000/oz. – especially with what has happened to the equity market.

The two-month bullion decline brought the SPDR Gold Trust ETF (GLD) back down to a 2022 weekly uptrend line – a line that now has four additional touches to it on top of the two you need to first create the line. It has also played with but stayed above the bearish Propulsion Momentum level of $170.28 for three weeks running. As such – along with my feeling that the dollar may have run its course – we will look to buy a GLD July 15 $171/$176 call spread for $1.85 (based upon Wednesday’s closing mid prices).

GLD – Weekly