Trading Gold Volatility Amid the Recent Price Spike
Volatility in the gold market has been rising along with prices, as evidenced by the recent 30% spike in the CBOE Gold Volatility Index (GVZ)
Volatility in the gold market has been rising along with prices, as evidenced by the recent 30% spike in the CBOE Gold Volatility Index (GVZ)
The price of gold recently hit a five-month high and is trading just 9% below its all-time high, setting up the potential for a dramatic finish to the year.
Fear of losing money sidelines too many would-be investors. They’re afraid they sell at the bottom. So, what would be the worst-case scenario if someone bought at the peak and then sold at the subsequent worst time? How can a covered call—perhaps the most boring of all options strategies—improve performance? “Worst-case scenarios,” below, shows the results … Continued