Ichimoku Gold Futures Trade Setup: 4-20-10

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  • Ichimoku Gold Futures Trade Setup: 4-20-10

Mini Gold Futures (YG) looks to be setting up for a bullish trade to retest the high.  We are going to setup a beakout trade with a tight stop.   Once we enter the trade, we may change the stop to the Kijun Sen off the daily depending on how the charts look.

You can enter buy purchasing stock or looking at options.  Your stop will be the Kijun Sen minus a buffer.   Below is the risk graph for ONE possible option choice.   On this option choice, we are looking for a pullback, where the option price will go from a mark of 0.80/contract to 0.50/contract for the Jun 16 call options.  It may not pullback enough to change the options so you have to watch it.  The other option is to look at the June 17 calls which right now are being priced at 0.45/contract mark.    The delta is 0.25 so if the stock moves up $1 we are looking at 50%+ which is good.  Also, volatility should be increasing since earnings is coming up