Is the flight to safety trade back? Or was Tuesday’s explosion to the upside a one day event?
After Yesterday’s sell off giving back all of Tuesdays move the skew flipped to the put side slightly.
With the current volatility in Gold it is anyone’s guess. However this is a great chance for premium sellers. Options price in a 25$ move in 32 days. That being said if bullish look for put credit spreads below 1310. If a trade is bullish look for call credit spreads above 1360. If no opinion on direction as option trader should be it is a great time to look at being back spread. Meaning buy EOM options look to sell weekly options to finance the long options. With current vol levels it’s a great shot to lower the spread to 0 cost or if done correctly put the position into a credit spread with a debit risk profile.
Protect yourself at all times