Analysts are projecting a year-end price target of $1250 for the precious metal, since futures fell below $1400. Todays bid up in gold is partially attributable to short covering following COMEX being closed in observance of Labor Day.
Continued weakness in the Indian Rupee is seen as hurting demand. India is the world’s largest consumer of physical gold, closely followed by China.
The Trade: Selling the GLD Sep 140-142 Bear Call Spread for $0.50 credit
Risk; $150 per 1 lot
Reward: $50 per 1 lot
Breakeven: $140.50
Greeks of this Trade:
Delta: Short
Gamma: Short
Theta: Long
Vega: Short