The account just purchased the IAU December $12.00 put. The cost was $0.25 before commissions and expenses. The goal of the trade is to see the option sold at $1.00.
The trade was made based on the following fundamental and technical factors:
- Taper talk is back
- The chart is hitting the bottom of its range (strong possibility of breaking through to $11.00)
- Strong talk about capital rotation out of gold into other assets like stocks
- End of year sales of losers to gain tax advantages