Trade Alert – (GLD) June 27, 2025 – STOP LOSS – 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) – STOP LOSS

Sell the SPDR Gold Shares (GLD) July 2025 $290-$300 vertical BULL CALL debit spread at $7.60 or best

 

Closing Trade

6-27-2025

expiration date: July 18, 2025

Portfolio weighting: 10%

Number of Contracts = 12 contracts

The wholesale flight of capital into technology stocks this week has definitely taken the wind out of the gold trade. As a hedge against risk, it seems to no longer be needed. Stocks that go up every day don’t need hedges, or so some traders think. This will not last. A respectable $6.00 rally in the bond market (TLT) hasn’t helped either.

This is a short-term phenomenon only, and I expect gold to resume marching towards $5,000 shortly. Today’s move has the flavor of a capitulation selloff, and the barbarous relic could turn around as early as Tuesday.

However, I have my own iron discipline to maintain. We have just had a tremendous run of winners, 16 out of 17 in a row for Global Trading Dispatch. The Mad Hedge Technology Letter has racked up another 10 winners. We have major profits to protect this year, up some 42.31%, putting us well ahead of the pack. So I am going to stop out here with a minor loss.

Therefore, I am selling the SPDR Gold Shares (GLD) July 2025 $290-$300 vertical BULL CALL debit spread at $7.60 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 $7.60, $7.50, $7.40, $7.30, and $7.20. 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 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 is a bet that the (GLD) will not fall below $300 by the July 18 option expiration in 23 trading days.

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

Sell 12 July 2025 (GLD) $290 calls at………….……………$13.00

Buy to cover short 12 July 2025 (GLD) $300 calls at……$5.40

Net Proceeds:………………………….………..……………………$7.60

Loss: $8.80 – $7.60 = $1.20

(12 X 100 X $1.20) = $1,440.

 

 

 

 

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.