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Carter Worth And Mike Khouw's Bearish Gold Trade

Carter Worth And Mike Khouw's Bearish Gold Trade

Carter Worth analyzed on CNBC's Options Action the price action in SPDR Gold Trust (ETF) (NYSE: GLD). He thinks it has had a good run, but now it looks tired.

The stock reached its 52-week high in July 2016 and after that it traded sideways for a couple of months. It moved lower in November and it reached its 52-week low in December. After it bounced off its lows, SPDR Gold Trust (ETF) traded higher in January and February and now it's trading close to the 50 percent retracement.

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Worth believes that SPDR Gold Trust (ETF) looks weak and he would take profits or sell calls in the name.

Mike Khouw suggested a bearish options strategy in SPDR Gold Trust (ETF). He wants to buy the May 116/107 put spread for $2.25. The trade breaks even at $113.75 or 3.20 percent below the current market price. It can make a maximal profit of $6.75.


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