NaughtyPines

GLD -- MAR 18TH IRON CONDOR

AMEX:GLD   SPDR GOLD TRUST
GLD             is quite literally "in the middle of things." Although I would prefer to sell on strength and buy on weakness in the areas I described in the post below, an iron condor that delineates a profit zone of sorts between 103 and 111 makes some objective sense as well:

GLD             March 18th 100/103/111/114 Iron Condor
Probability of Profit %: 56%
Max Profit: .98/$98/contract (although you can play with the width of the wings to wring a bit more out of the trade)
Buying Power Effect: $202/contract
Break Evens: 102.02/111.98
Comment: Filled for .98. Will look to take it off at 50% max profit.
Comment: Out of the short put side at near max profit, leaving me with the "broken" call side to deal with. I also am treating a later 115/118 short call vertical (also broken) I put on a few days later as part of this setup and will proceed to sell a short put vertical to protect the position from further upside.
Comment: I'm going to hit the pause button on this position and wait to add short put verticals (which could give me a headache if price decides to whipsaw back to the downside (a la late July precious metals dump). It is likely that I will have to roll at least one of the two short call verticals near expiration, they're at potential max loss here, so it doesn't hurt to wait.
Comment: Sold a put spread to give me some long delta in GLD to offset the two short call credit spreads (111/114 and 115/118) I have on -- a March 18th 104/107 for a .24 credit. It isn't much credit/contract, but my guess is that I'll be rolling at least one of those credit spreads out for duration, so I guess I'm getting an early start on working the tested side off ... .
Comment: With the put side already nearing worthless, covered it for .07. I'll wait for another "dip" to get back into the short put side.
United States
United Kingdom
India
Deutschland
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
Malaysia
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing Priority Support Ideas Published Followers Following Private Messages Chat Sign Out