I am no gold bug. But that doesn’t mean I don’t like a good collar setup. I do, and I see one in the SPDR Gold Trust (GLD). Gold has transitioned from a parabolic runner to a battlefield between long-term bulls and macro-driven liquidators. After touching an all-time high of $514 per share near the end of January, (spot gold hit $5,595), the ETF has corrected roughly 20%, currently trading near $414. So $100 a share off that top.
This makes GLD a prime candidate for a collar — owning the shares, buying a protective put, and selling a covered call — as the market waits to see if the recent floor near the 200-day moving average holds or if the current “energy hurricane” in the Strait of Hormuz forces a deeper breakdown.
