Carter Worth Sees Upside Potential For GLD

, Carter Worth said that the U.S. dollar had a big run which caused gold to decline. He believes that the rally is overdone and it is possible to catch a fade or a pop in gold. It is visible on a weekly chart that the U.S. dollar has been trading in a range for the last two years and now it is trading at the top of the range. Worth explained that trading assets never breakout from the range immediately. Usually an asset trades around the upper band for a while. He is expecting the U.S. dollar to pull back and

to trade higher to $125. Although Mike Khouw is not a big fan of gold he suggested an options strategy that would make money if Carter Worth is right. Khouw would buy the December 121 - 127 call spread for a premium of $1.55. The maximal profit for this trade is $4.45 and the premium is the maximal amount that can be lost. Mr. Khouw thinks that this is attractive risk - reward despite the 50 percent chance for success.