Friday, September 7, 2012

IAU Option Trade Ends Code Yellow

The IAU option trade has ended. The October $16.00 call options were sold for $0.90 before commissions and fees. IAU was trading at $16.82. The status of the trade was Code Yellow.

Some reasons for the sale include:

- The move up was very quick

- The move up in the ETF reached its target price. Technical analysis shows there might be some resistance at this point.

- Speculative time value in the option has dropped below $0.10.

If a more conservative approach is more to your trading style, Trading Futures ETF Options also follows Sell The Call, a blog covering all things covered call. Previous trades include USO options.

**Disclaimer** - This is just trade information. It is not a recommendation to buy or sell any of the securities mentioned in this blog. Do your Due Diligence before any trading or investing.

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