Friday, September 4, 2009

Now what do I do?

Ok...so my $9,600 option investment a few days ago is now worth $34,000. (Of course, my short position in Gold has me down a little over $6,000.)


However, Adam Hewison, the Trade Triangle guru, and one of the reasons that my accounts are doing so well, said a few hours ago that if spot gold closes over $989.85 (which it did @ 994,) then we go a lot higher. The trend is obviously up, but I could make a case that a close at, say 999, would be a little more bullish for Gold, based on the chart I drew below (clicking on it gives you a clearer view):

Anyway, now I have to make my decision. The reason I bought the calls was to hedge my short. If I get out now, I'm naked, so to speak...and my loss is unlimited. I think there are definitely some better options then that (no pun intended.) The Greenback held the 78 level on a closing basis...so I think I will watch very closely.

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