Professional Trader Todd Gordon Plans To Triple Money on Gold Trade

Professional market expert Todd Gordon plans to benefit from the possible gain of gold trade as he thinks gold is going to step forward from its present range. What's his plan? Let's find out.

Despite the uncertainty circulating linked with the upcoming presidential election and short-term interest rates in low levels held by Fed, Gordon predicted that "gold can continue to push higher," CNBC reported.

Although the Exchange-Traded Fund (ETF), SPDR Gold Trust (GLD), that tracks gold features has revealed that there was a fall in a range on the summertime, Gordon said on CNBC: "It looks like we should be able to break the range and continue through the top side." To do this, he will buy a call that is just above the current price for trade about $127. So he will buy 130 call and will pair it up with the sale of 135 and trade it right up till election time.

To be specific, Gordon bought 130 call that will expire in November and traded the 135 call for an average of $1.23 for every share, or $123 for every selection spread. CNBC noted that if SPDR Gold Trust (GLD) closes in or more than $135 on its expiration date, a 5.5 percent profit for the Exchange-Traded Fund (ETF), Gordon will have his money almost tripled, for a $377 gain.

Nevertheless, if the SPDR Gold Trust (GLD) recedes less than the range during summertime, he aims to "cut the trade and protect and premium that is remaining on the options spread." "We have an attractive risk-to-reward ratio," he remarked.

Todd Gordon started his professional trading career short-term, trading New York Stock Exchange listed stocks utilizing the S&P chart and futures audio as a leading indicator. He moved to a money management and market research company in Los Angeles before going back to New York to work with Forex.com.