John Lansing

3 Golden Option Opportunities

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The GOLD Dec 70 Calls (GUDLN) I recently recommended to OptionsZone readers hit my $6 target, netting you at least a 130% profit if you got in below my buy under price of $2.60.

I think the bullish trend in gold is going to continue, so we need to position ourselves in some new plays. These plays are not ready for an entry as I type this, but they very well could be by the time you read this.

I will go over the specific of the plays in just a moment, but first we need to review the actual price action in gold. An expected price move to at least the spot $1,100 per ounce level seems like a reasonable pattern target on the daily chart in the medium term.

You can see on the daily chart below that we broke north out of a symmetrical triangle, but on the weekly chart we have yet to break out of the ascending triangle.

The ascending triangle breakout is going to be the "big move" in gold. What we're currently seeing is just a little appetizer breakout, a small sampling, if you will, of the gains we will be making by trading this sector.

Daily Gold Chart

Weekly Gold Chart