MayWk1 - GLD Market Summary
The market last week was an interesting up/down motion, and I am referring to Friday's movement on 3 May 2013. The trick is to look at the interactive charts on Yahoo Finance for GLD. The movement and volume helps guide you the retail investor into making an even more inform decision before putting in the trades.
My experience, limited though, but at least I observed that on any ordinary week, there is a similar pattern to be noticed. Usually after midnight, the premiums tend to drop. That's a good sign because the faster the premiums drop, the higher the chances that the trade will expire worthless.
The important thing to note is that we are selling call and put spreads. There is nothing more delightful than actually getting in on a trade with a high premium and then it drops immediately after that. Getting that trade is often the difficult part.
The charts above just doesn't seem anywhere near exciting, but coupled with the interactive charts and bollinger bands, the trade hunting gets very, very interesting. Needless to say, my trade expired worthless, and I pocketed an ROI of 5.95%. :) Nice.
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