Yesterday I hopped on the gold bandwagon near the close and bought to open 20 GLD Shares at 90.98. With the USD continuing to drop off, metals and oil are likely to rise. I also think gold will continue to rise, even if the stock market stays neutral or falls south. That's different then my opinion of oil, which I think is having a great run due to the market, and will drop off if the dollar strengthens and the market falls. I've got a stop loss on the GLD shares at 89.90, which may be a little tight, but on the chart looks like a valid place to have one.
To offset my long SSO 24 Sep Put, today I sold to open 1 SSO 25 Jun Put for $.95, and received $92.05 after commissions. If the market continues to head north, I'll hold onto this and possibly close early for a profit. However, if it turns south and vega (volatility) picks up again, I'll close this position and let the Sep Put go. Since this is only a few weeks from expiration, if the market heads sideways, I'll win based on the time value declining.
--After reviewing my Jun 25 put sale, I'm already regretting the decision, I should've at least sold the 24, not the 25 and I really didn't think about what I would really do if the market quickly drops off, like it has at the close. I'm already down $45.00 on the position and unless there is a rally tomorrow, I'll probably have to close the position for a loss.
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