In today's From Theory to Practice, Jim Schultz analyzes market conditions as gold reaches new highs, suggesting a potential reversal. He executes a downside butterfly spread on gold futures (GC) with strikes at 3855/3820/3785 for a $5 debit, positioning for a possible pullback.

Despite gold's strong uptrend, Dr. Jim points to morning price action showing a $50 dip as a potential "chink in the armor." He also restructures an existing GDX position by rolling a put from the 62 to 70 strike, creating a straddle and collecting $1.39 additional credit.

For earnings, he places a bearish ATM Vertical Spread on Nike (NKE) ahead of after-hours results tonight, buying the 71 put and selling the 67 put for $2.13.