re: "Its an excellent strategy slider and even though I'm a Natty bear
for a while its the smartest trade a bull can make. Kudos"
We'll see how excellent it is in due time.
I was working on this gold chart last night, I was thinking stops
around $1150 and a re-entry target of $1050 on any correction
seemed prudent.
I didn't think we'd be testing those stops today...
Not a fun day, as I got my stops run hard & fast this morning
on gold shares, but I had raised them up behind this rally on
Wednesday to HUI 480...
Message 26143700
From: SliderOnTheBlack 12/2/2009 8:26:50 AM
"Move stops up tight, (I've raised them from HUI 460 to 480).
Add a few puts for insurance.
And nothing wrong with taking a few chips off the table into
further strength. But when you got the Mo, you got the Mo.
You have to give gold the opportunity to pull the gold stocks
through that HUI 518, prior all time high.
Use sound money management strategies (puts & stops) to take the
emotion (greed) out of the trade, but continue to let 'em run."
-------------------------------------------------------------------------------
I bought a few January 2010 puts, and a couple of Jan. 2011
LEAP puts for insurance. The January 2010 puts are now more
lucky than good, as it was more of a mechanical money management
strategy, than it was a prediction of an imminent correction.
A nice quick profit on puts helps soften the blow of a fast
stop out correction, but I really thought we had a good chance
to take out the old HUI 518 highs on this move, before any
significant correction. But, we were at the upper resistance
band of the HUI trading channel - hence the mechanical
move to raise stops and add puts.
And those "mechanical" trades often save you more money
than your best anticipatory trades will make you.
The point of these "mechanical" trades is to take the emotion
out of it, and that's half the battle.
I thought around 10 a.m. we may be bottoming and my stops
@ HUI 480 would hold, but no cigar. Now down to a core hold.
We bounced intra-day right off the HUI 460 (459) pivot point.
On physical gold...
I put an $850 put/$1050 call options strangle on GLD back earlier this year at $916 gold...
Message 25502122
To: Eva who wrote (16255) 3/17/2009 11:32:33 PM
From: SliderOnTheBlack
"And what's our favorite trade when volatility is the flav' du jour?
... long option strangles and/or straddles.
In "this environment" I'm not trying to trade the daily
oscillations as gold moves from $875 to $950 here.
I want insurance (and a profit) sub $850-875....and I want
levered upside to $1050+ gold."
--------------------------------------------------------------------------------
I'm holding a +$200 move in gold on the GLD calls from March,
and I'm right on my stop here, watching GLD into the close.
The way GLD/Gold is tanking here, hell I may cash in on
the $875 puts by year end too <vbg>.
Well that's what insurance is for.
Maybe John Paulson is creating an entry for his new gold
shares fund in January <vbg>.
We had a big move off the washout down to HUI 160 last
November, and we're still sitting on a near triple here.
Can't complain about that.
The only thing I bought back today was some SLW on the
break of $16. Watching how we close.
I'm thinking let Mr. Market have the next 10% and
wait for a further pullback, or re-buy the breakout
above the HUI 510.58 closing high of this rally leg.
Where's China when you need 'em?
SOTB |
