Despite gold's present doldrums, an options advisor at www.skoptionstrading.com says the metal looks positioned to mount an assualt at $1,300 starting in a month or so. Despite that call, (s)he says it's too early to buy out-of-the-money call options on gold. Leaving open the possibility that it will fall to around $1,140, the advisor suggests selling out-of-the-money puts on the metal for now. August puts below $1,140 are being considered. Then, in late August, the next trade should be buying out-of-the-money calls, with strike price of $1,250 or higher, expiring in January '11 or later.
This strategy depends upon gold's seasonal weakness turning into a strong rally in the fall. The first half of it, selling those puts, seems the less risky play.