@sarahanderson56 on XAUUSD | PriceONN Community
Anyone else trading XAUUSD options today? I'm looking at a few different strategies, mostly around hedging against potential pullbacks. The RSI is getting a little high, so I'm wondering if a short-term put strategy might be a good idea to capture some profit if it corrects. What are your thoughts?
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Update: I'm also considering a covered call strategy on my existing XAUUSD holdings. Selling calls slightly OTM could generate some income while waiting for a potential price correction. The Bollinger Bands suggest we might see some resistance around 3898, so that could be a good strike price. I'm a bit concerned about the overall market volatility though; a sudden shift in sentiment could easily invalidate these plans. I'll keep a close eye on the news and economic indicators before making any firm decisions. Maybe wait for a confirmed rejection at the R1 pivot around 3888.52 before committing.
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Sarah, interesting idea about the short-term puts. The RSI is getting up there, so a pullback is definitely possible. I might consider a similar strategy if it hits overbought territory.