<div id="readability-page-1"><div><p>If you've been watching the <span id="SpecialReportArticle-QuoteInBody-1">SPDR Gold Shares (GLD)<span><span id="-WatchlistDropdown"></span></span></span>, you know the yellow metal has been consolidating and appears to be bouncing off its 150-day moving average (support). If one prefers to use the 200-day moving average, that support level is just below $400, which is also approximately the 50% Fibonacci retracement level.</p><p>Here's how to trade the technical setup: the June $395/$445/$480 call spread risk reversal.</p></div><div><p>This strategy provides a low-decay bullish play for a total net debit of just $4.00 per contract, or 1% of the current price.  Of course, selling that lower strike put will tie up a lot of cash, but less so than simply buying 100 shares of GLD.</p><ul><li>Sell the June $395 Put</li><li>Buy the June $445 Call</li><li>Sell the June $480 Call</li><li>Skill level: Advanced</li></ul><h3>Why This Strategy Wins</h3><ul><li>Structured Around Key Technical Levels: We see immediate resistance at $441. By placing our long call strike at $445, we aren't paying for &#34;hopium&#34; premium. Instead, we use a call spread to mitigate the immediate resistance barrier. Meanwhile, that short $395 put sits comfortably around our lower support level. If GLD drops, $395 is a level one might consider starting to add to one's positions. By selling that put, we take that risk, but it's an acceptable one.</li><li>Weaponizing &#34;Call Skew&#34;: Gold and other commodities play by different rules regarding options prices than equities typically do. For stock options, puts generally trade at a premium to at-the-money options and out-of-the-money calls. With commodities, when geopolitical tensions or inflation fears spike, investors often scramble for upside calls, making out-of-the-money options expensive relative to at-the-money options. By selling the higher strike $480 calls, we exploit this &#34;call skew&#34; to heavily subsidize the cost of our $445 upside exposure.</li><li>The Theta Sleep-Easy Factor: Pure long options positions bleed money every day you wait for the move. Because we are selling both an out-of-the-money put <em>and</em> a higher-strike call, we drastically reduce our time decay (theta). Time is no longer your enemy.</li></ul><p>The risk reversal will tie up slightly less capital than buying GLD stock at $433, lets you capture a massive chunk of the anticipated &#34;gold rush&#34; for next to no premium outlay. You get defined, subsidized upside, and a meaningful buffer on the downside, and a trade that works <em>with</em> the dynamics of the options market, not against it.</p><p>Get long, use the skew, and let the 150-day moving average do the heavy lifting.</p></div><div><p>Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.</p></div></div>

GOAU

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<p>The SPDR Gold Shares (GLD) is showing signs of a bounce off its 150-day moving average. A suggested trading strategy is a June $395/$445/$480 call spread risk reversal, costing $4.00 per contract. This approach mitigates immediate resistance at $441 while providing a buffer at the $395 support level. The strategy takes advantage of the "call skew" in commodities, reducing time decay and capital requirements compared to buying GLD stock directly. This allows for a defined upside with manageable risk.</p>

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The gold chart looks poised for a bounce. How to play it for less