Each week, I’ll give an overview of a stock and Licia Leslie will follow that up with a chart analysis the next day. Bill Griffo will chime in with macro analysis and Andrew Giovinazzi will then finish out the week with a volatility breakdown.

Have a stock YOU want us to review? Email my team here. – Mark

Hey Traders,

Just when you thought it was safe to jump in the water, J-Pow gives the market a shiver on Friday. 

Is it moving SPDR Gold Trust (Ticker: GLD) enough to move the implied volatility anywhere?

Inquiring minds want to know!

Debt Limit Fight and GLD Vol Cannot Get Off the Floor

GLD has been range bound once the hint of rate hikes started to fade.It’s made a couple of recent highs after the bank crisis (that’s still going on, mind you), but implied volatility has not done much.

IV30 and IV60 are doing very little:

If it’s not near the bottom of the range, it is close to it.  A call calendar would be a reasonable low IV trade.

While GLD volatility is low, realized vol is even lower with 13.51 for a 30 day realized. Very slow moving product right now.

If the debt ceiling talks can’t get anything going, I have a hard time thinking GLD will spike.

OTM call calendars could work. With IV this low, I would err on the side of staying net long Vega, but increase the duration of what I owned.

To Your Trading Success,

AG