I think gold is headed lower in the next month. So one might ask...why the heck did you close out your short position? Answer: I saw a nice profit and I took it. Plain and simple. I still believe in the trade, so I picked up three Feb $97.00 puts on (GLD) @ $0.33 each.
Here is how I am looking at this trade going into it, I'm playing with the houses money. I made a few hundred bucks on my earlier short, so I take some of that money and triple down. If the trade goes against me, I still make money overall. If I am correct in my thinking, then I should make a very nice profit.
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