With gold trading near $4,980 per ounce and showing signs of consolidation, there’s an opportunity to profit from gold’s resilience through an indirect approach.
Here’s how a simple options strategy can deliver a 74% return on capital whether gold rallies, consolidates, or even dips modestly.
Why GLL?
GLL moves in the opposite direction of gold and does so with 2x leverage. When gold rises or holds steady, GLL declines. Currently trading well above its all-time low of $15.62, GLL presents an attractive risk/reward profile.
The Trade
Action: Sell the July 17 17 $16 Call on GLL
Premium Collected: $4.30 per contract
Capital Required: $580 per contract
Return on Capital: 74.1%