Sunday, December 06, 2009

Barrons on GLD option skew

Barrons has an article about GLD options (link)

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For the first time in recent months, the puts on SPDR Gold Shares (ticker: GLD) -- the exchange-traded fund that everyone uses as the primary proxy for the commodity -- are becoming more expensive relative to calls. Such a change would be practically invisible to most investors, but sophisticated investors and professional traders watch them closely. Why? Changes in "skew," which is the difference between the volatility of out-of-the-money puts and calls, is often the canary in...the gold mine.

>>

I am watching GLD, and TLT. I don't have enough time to look at most individual stocks.

Long SPY
(* There was a SPAMMER on the Tuesday SPY buy post, that I couldn't figure out to delete, so I deleted the entire post. Sold DEC 99 SPY puts.)

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