I do not usually buy options, but I am making an exception to buy out of the money calls on gold. The value of these options will continue to decline and do so rapidly unless the gold price spikes up again in the near term so this could become a big loser with few ways to defend. I am putting this trade on because I am not seeing many other opportunities at the moment. I am short broad market indices, crude, and several currencies against the USD (not recorded on this blog), but shorting is not for everyone so this trade is another way to fade the risk on market mood. I know the stock market is a forward looking machine, but I am having trouble wrapping my head around the disconnect between the near market highs and the real state of the economy. Seems the market is anticipating the end of COVID-19, job losses, lower corporate revenues, debt crisis, political upheaval and rioting or does not think they matter. Selling gold puts would be another way to express my opinion, but I am not interested in tying up the buying power required for that trade at this time.
Bought /GC Jul 1790C for a debit of 12.90.