This reduces my long position in gold. I take on the risk of an upside explosion in the gold price past 150, what I get is the small call premium. I am short strangles (short both puts and calls) on GLD.
In plain English, this means I make a small profit if gold stays in a trading range, and lose if there is a big move up or down, with the possibility of huge losses on a huge move.
Long BRKB EMN GE GDX IWM KORS LGF
Net long APC BA GLD SPY XRT