Livevol (R) www.livevol.com
If we look at actual GLD vol over the last 10 and 20 days, it actually looks somewhat fairly priced.
Livevol (R) www.livevol.com
That doesn’t mean that it’s a sale right here. ?Unlike the SPX, which is being driven higher by search for yield, GLD does not have a ‘yield’ right now. ?In fact GLD has been having a VERY rough go of it over the last 6 months. ?We could be heading toward a period of GLD vol that stays in the single digits for some time, but, I am not sure I would want to make that bet. ?When we have seen IV get THIS cheap it has quickly be bought
The Trade:
I would be looking at owning a May or June straddle or strangle in GLD as I think we will get a force that makes this precious metal moving again.
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