From time to time, I get together with thinkorswim co-founder Tom Sosnoff and do the "Tom & Tim Show", which consists of me talking about charts and Tom talking about how he would trade them. We have great fun with this, and as is obvious to anyone in the audience, it is totally unrehearsed. He doesen't even know what symbols I'm going to talk about.
One thing I've learned from these is about GLD, since I often show a $XAU chart. As we all know, options on the XAU are horrible – – huge bid/ask spreads, miniscule volume and open interest – – yuck. Tom turned me on to GLD as an alternate, and although it's not going to win awards for the most tradeable options in the world, it's much better. I bought a ton of puts on GLD this morning during gold's surge.
As of this writing, GLD is sporting a fantastic shooting star pattern. I'm using 84.68 (the level of that horizontal line) as the contingent stop.
