Trade Alert – (GLD) June 11, 2025 – TAKE PROFITS – SELL

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert – (GLD) – TAKE PROFITS – SELL

SELL the SPDR Gold Shares (GLD) June 2025 $275-$285 vertical BULL CALL debit spread at $9.95 or best

 

Closing Trade

6-11-2025

expiration date: June 20, 2025

Portfolio weighting: 10%

Number of Contracts = 12 contracts

We managed to catch a one-month sideways move in gold. That is a huge win for the unique options strategy I employ.

The (GLD) actually fell $3.00 over the past month. Our entire profit came from time decay and an impressive implied volatility decline from $26 to $17.

With 95% of the maximum potential profit in hand, the risk/reward of continuing 6 more days until the June 20 options expiration is no longer favorable. This is a “Take the money and run” kind of market. A headline from the trade war can hit any time, and we have a monster US Treasury bond auction on June 12.

My long-term target for the barbarous relic remains at $5,000, or up 60% from here.

As a result, you get to take home $1,140 or 10.56% in 27 trading days. Well done, and on to the next trade.

Gold has recently reaffirmed its status as a flight to safety asset class when safety is suddenly commanding a big premium. This is all happening against a backdrop of global trade wars, but also a rapidly deteriorating US Economy.

With a stock market crash still underway, a premium is being paid for all flight to safety “risk off” assets.

It is all very gold-positive.

If you can’t do options, buy the stock. My long-term target for (GLD) is $500, up nearly double from today’s $300.

Therefore, I am selling the SPDR Gold Shares (GLD) June 2025 $275-$285 vertical BULL CALL debit spread at $9.95 or best

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to spend all day in front of a screen, simply enter a spread of Good-Until-Cancelled orders overnight, like $9.95, $9.93, $9.91, and $9.89. You should get done on some or all of these.

The bull case for gold is simple. Falling interest rates mean less yield competition for gold, which yields nothing. China and Russia have been stockpiling gold for years to avoid international financial sanctions. The only way the Chinese can save right now is to buy gold.

A global gold shortage is developing, with new mine costs rising. Gold also offers protection against rising US debt, which is expected to hit $35 trillion shortly.

On top of all this, Chinese speculators have shifted their principal savings vehicle from real estate, which has crashed and has no future, to gold. This adds a large retail element that has never existed before.

SPDR Gold Shares (GLD) is a play on physical gold. They are shares in a corporation that owns 400-ounce gold bullion bars held by a London trust. It is far safer to own gold through the (GLD) than through owning your own physical gold bars via a third-party custodian. If the custodian goes under, which is frequent, your gold is gone. With (GLD), your credit risk is with State Street, a highly rated firm with a strong balance sheet.

For details about SPDR Gold Shares (GLD) please visit their website at https://www.spdrgoldshares.com.

This was a bet that the (GLD) will not fall below $285 by the June 20 option expiration in 33 trading days.

Here are the specific trades you need to exit this position:

Sell 12 June 2025 (GLD) $275 calls at………….……………….…$32.00

Buy to cover short 12 June 2025 (GLD) $285 calls at…………$22.05

Net Proceeds:………………………….………..…………………..….……$9.95

Profit: $9.95 – $9.00 = $0.95

(12 X 100 X $0.95) = $1,140 or 10.56% in 27 trading days.

 

 

If you are uncertain about how to execute a bear put options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually, or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.