This post is restricted to paying members. To follow are specific active trade details:
Stock / Symbol: Gold ETF / GLD
Strategy: Diagonal Put Spread
Trade entry date / price: 25 May 2021 / $176.15
Price at this post: $175.27
Update / Reasoning: After over a week in this trade, we finally saw GLD have a significant down day, today. When I entered this trade, I was looking for a quick 3.5% pullback in GLD to my target of $170. Now, looking at the chart, I'm seeing a definite chance that GLD finds near term support at its 200 day average, currently at about $173. So, on the premise that GLD might turn around once it touches the $173 level, I'm entering on an exit order, expecting it to fill with the underlying down at the $173 level, to capture a 8% return within two weeks time. The current Greeks for the position are: -31. 8 Delta, 2.3 Theta, and 47.1 Vega. If you'd like keep the risk on to go for a bigger return, I'd suggest looking to close at the original $170 target.
Trade Entry Order:
STC 1 GLD 21Jan22 175 put
BTC 1 GLD 18Jun21 170 put
For a min net credit of $8.60 per contract (GTC order, limit order). The mid is currently at a credit of $7.98. As mentioned previously, this order will likely not fill until GLD trades down further, to about $173.
Analysis:
Max Risk: $800 / My Risk: $795
Max Reward: $285 or 35% with GLD at $170 on Jun 18th
Profit Range: GLD between $160.50 and $176.50 at market close on Jun 18th
Estimated Commission (round trip): $2.60
Upside Stop @ $183.55
Take profits @ $170 to $173 range
