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Several noteworthy analysts have mentioned gold along bearish tones recently. Personally, I don’t see it but that does not mean that I’m going to hang my a** out the window and leave my equity exposed. With the 20 day volatility number at just over $20 / ounce, it’s ENTIRELY possible that you could see a $60 down day in gold.
There are probably a few things you can look at in the gold chart, but like with clouds, if you look too long you’ll see whatever it is you’re looking for. The 1440 mark represents a level of support that is about 7% away from Friday’s close on the August contract. Looking at it another way, it’s a bout 5 ATR’s away from Friday’s close.
As for married puts, synthetic positions, and spreads…not for me in this market. If you trade small enough and use protective stops on your equity, you don’t need to hedge.
Using married puts to protect long gold can be tricky. Depending on which puts you use, you can still lose money on the long gold and long put options.