FxWirePro: Portfolio evaluation of XAUUSD calendar spread

We iterate, remember, exactly 1 week ago from now we had advocated ATM 0.5 delta calls, look at that effects now in the technical charts and imagine what an open position would have become. But for now naked calls are not suggested, hedge your position as follows.

Ensure market anomalies are to be monitored and managed with available option tools, all call options we've suggested thus far with an anticipation of short term trend reversal that took place on 06th of this month, in purchasing and holding this strategy, we have obtained a position that would gain value for an increase in underlying price from 1089.15 levels to today's top 1168 levels, volatility and fed's interest rate. Further the position will increase in value with time decay.

After this short term price recoveries, delta risk reversal as shown in the nutshell suggests downside hedging has been relatively expensive and daily technical chart makes us to have quite dubious eyes on prevailing bull run as there could likely be a formation of gravestone doji on peaks, while stochastic has approached overbought trajectory and attempting for %K crossover.

It should essentially be constructed while considering delta neutral and gamma neutral and relatively low sensitivity to standard deviation, but always have this in mind that the shorting instruments with +ve theta to be analyzed with other option Greeks during selection of such short side options.