With GLD at 118.6...exited spread for a good profit....Ultimately GLD hit price target of 120 and bumped it as resistance and started to roll over and exited position to preserve profit for a 24.99% gain
After another look, decided to spread position by selling to open 122 calls and cutting risk premium in half:
Adjusted Position: Call Spread 117/122 November 22
Rational: With around a month remaining on underlying options, simply a risk management technique
Update... GLD had a great bounce off support and a loser has turned into a winner right now.
Plan to start setting trailing stops and monitor closely hear...a rollover and exit immediately to preserve profits while a break thru 120 and look to hold and ride to next level of resistance and keep raising stops along the way to let the winners run while preserving profit.
Last week GLD gapped thru support(my exit target)...unfortunately not allowing for a better exit(loss) opportunity and fell right on top of next level of support.
Plan going forward is to wait(plenty of time remaining on options) and see if this level of support holds and look for better exit opportunity. If a bounce does happen over next few days or maybe I wait if this level holds strong, I will exit and salvage remaining time on options.
Unfortunately got caught in a gap thru support where otherwise would have looked to exit if GLD behaved nicely...but it didn't!!! Now looking for a better exit opportunity.
Technicals - GLD appears oversold & possibly turning back up as & Stochastics show oversold conditions
Entry=117.25, Target ~120, Exit=116
Bought to Open - GLD Nov 22 '14 $117 Call
Good Risk/Reward entry...anticipating a relatively quick trade(a few days to maybe a couple weeks) but buying enough time for underlying to move
Plan to exit on significant move up or stick to target exits