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There’s something satisfying about finding a strategy that just works — week after week, trade after trade. A couple of weeks back, I discussed a weekly gold income trade I’ve been taking, so today I wanted to touch base on it again.
My weekly gold trade’s been delivering about $500 in profit each Friday. And the setup right now? It couldn’t be much prettier.
Gold has broken out from its prior highs, and we’re spacing out nicely from the 50-day moving average (MA) while momentum continues increasing. In my view, we’ve got a clear runway until we hit resistance at the all-time highs.
This is the kind of technical picture that makes a systematic strategy even more attractive.
The Weekly Trade I Keep Taking
Here’s what I’m doing: I’m selling bull put credit spreads on SPDR Gold Shares (GLD) going one month out in expiration, using the 50-day MA as my strike selection guide.
For last week’s trade, I used the Jan. 9 expiration, selling the $374 puts and buying the $373 puts — which lines up right at that 50-day MA sitting at 374 on GLD.
The logic is straightforward. I’m bullish on gold for the next year but this trade doesn’t require gold to rally hard. It can go sideways. It can even drift down a little. I just need it to stay above that 50-day line over the next month — and that line has proven to be strong support for more than a year.
I placed 24 contracts to hit my $500 profit target, getting filled at 21 in premium per spread. That means I’m risking about $1,800 to make $500 — which works out to roughly a 25% return on investment.
If GLD stays above 374 by expiration Friday, the puts expire worthless and I keep the full premium.
Why I Use Puts Instead of Calls
I specifically use the put side for this trade. When out-of-the-money (OTM) puts expire worthless, they just disappear from your account — no action required.
Calls, on the other hand, can trigger exercise fees even when they’re profitable. For a weekly strategy like this, those little costs add up. Keeping it on the put side keeps it cleaner.
This is now my fourth consecutive week running this setup and so far I’ve been cashing checks — $500 a week. I’ve got a lineup of these positions stacked up on different Friday expirations.
Does this win every time? No. No strategy does. But that 50-day MA has been a key support line for gold for more than a year and it gives me a solid reference point with favorable odds.
When you find something that works consistently, you keep taking the trade. I’ll keep doing it as long as the technical setup holds.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. The Next ‘Viral Stock’ Is Flashing as We Speak
My star student has leveraged “social momentum” on stocks to outpace every hedge fund out there in the last three years.
And now he’s spotted another ticker set to go “viral” any moment from now.
