Make Learning To Trade Options Your Beating Inflation

Trading options, not GLD, is a great way to fight inflation.



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Inflation fears continue to rise in the US The US Federal Reserve has raised interest rates to combat the ever-increasing CPI (Consumer Price Index) which hit a recent record high of over 9% last June. This pushed consumer prices to their highest levels since late 1979.

Recent weakness in food and energy prices contributed to the decline in the CPI, which was last reported at 8.5% in July. Better but not great inflation news.

The spread between the two-year bond yield and the ten-year bond yield continued to reverse. A recession may be looming regardless of future Fed policy.

Gold Prices Find Support

Gold (GLD) prices again maintained significant support in the $157 area.

Shares reached oversold conditions on a 9-day RSI basis before strengthening. The MACD was also oversold and then moved higher. Bollinger’s B rate was briefly negative but has since regained positive territory. GLD is trading at a deep discount to its 20-day moving average.

The previous four times this happened marked significant near-term lows in GLD, as highlighted in aqua on the chart. A move back above the 20-day moving average seems the most likely outcome.

It will be interesting to see if the recent rally in GLD makes sense or if it pulls back to retest support.

Investing in gold as an inflation hedge seems like a bogus exercise at best. The fact that gold peaked in March 2022 just before the Fed began raising interest rates in earnest removes much of the inflation-fighting concern for holding gold.

Instead of gold, consider using the power of POWR options to increase your overall returns.

POWR options

What should I do next?

If you’re looking for the best options trades for today’s market, you should check out our latest presentation How to Trade Options with the POWR Ratings. Here we show you how to consistently find the top trades while minimizing your risk.

If this appeals to you and you want to learn more about this powerful new options strategy, click below to access this timely investment presentation now:

How to trade options with POWR Ratings

The best!

Hon Biggam

Editor, POWR Options Newsletter


Shares of GLD closed at $159.82 on Friday, up $0.84 (+0.53%). Year-to-date, GLD is down -6.52%, versus a -13.76% gain in the benchmark S&P 500 over the same period.


About the Author: Tim Biggam

Tim spent 13 years as Chief Options Strategist at Man Securities in Chicago, 4 years as Lead Options Strategist at ThinkorSwim and 3 years as Market Maker for First Options in Chicago. He makes regular appearances on Bloomberg TV and is a weekly contributor to the TD Ameritrade Network “Morning Trade Live”. His overriding passion is to make the complex world of options more understandable and therefore more useful to the everyday trader. Tim is the editor of the POWR Options newsletter. Learn more about Tim’s background, along with links to his most recent articles.

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