... for a 2.63 credit.
Comments: Non-closely correlated asset to the broad market. With only 39 DTE left in the Sept monthly, probably my last trade in that expiry before I start looking at October when its DTE dwindles down to <56 DTE.
Unlike SPY, GLD's skew is to the call side, with similarly delta'd puts being closer to at-the-money than calls, so I'm going double the contracts on the put side at half the delta of the calls and half the width of the call side wing. This makes for a more symmetrical setup relative to current price than were I to just sell equally delta'd short option strikes on both sides.
Metrics:
Max Profit: 2.63 ($263)
Max Loss/Buying Power Effect: 7.37 ($737)
ROC at Max: 35.7%
ROC at 50% Max: 17.8%
Will generally look at taking profit at 50% max.
Comments: Non-closely correlated asset to the broad market. With only 39 DTE left in the Sept monthly, probably my last trade in that expiry before I start looking at October when its DTE dwindles down to <56 DTE.
Unlike SPY, GLD's skew is to the call side, with similarly delta'd puts being closer to at-the-money than calls, so I'm going double the contracts on the put side at half the delta of the calls and half the width of the call side wing. This makes for a more symmetrical setup relative to current price than were I to just sell equally delta'd short option strikes on both sides.
Metrics:
Max Profit: 2.63 ($263)
Max Loss/Buying Power Effect: 7.37 ($737)
ROC at Max: 35.7%
ROC at 50% Max: 17.8%
Will generally look at taking profit at 50% max.
Trade closed: target reached
Closed for a 1.63 debit; 1.00 ($100) profit. 13.6% ROC.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.