This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Gold ETF / GLD
Strategy: Bull Put Spread
Trade post date: 24 Jun 2021
Price at this post: $166.43
Reasoning: Now that GLD has pulled back, I'm expecting it to find technical support at the 160 to 165 range, and then to move back up to the 180 level. To play this premise, I'm entering in to a Diagonal call spread, with a protective put, on GLD. Upon fill, the Greeks will be approximately: 4.3 Delta, -2.6 Theta, and 42.7 Vega.
Trade Entry Order:
BTO 1 GLD 17Dec21 167 call
STO 1 GLD 16Jul21 170 call
BTO 1 GLD 09Jul21 162.5 put
For a max net debit of $6.45 per contract (GTC order, limit order). The mid is currently at a debit of $6.36. I was just filled at $6.38.
Requirements:
Cost/Proceeds: $645
Margin Requirement: $0
Total Requirements: $645
Analysis:
Max Risk: $645
Max Reward: $140 or 21.7% with GLD at $170 on Jul 16th
Profit Range: GLD under $159 by Jul 9th (or) at $170 at market close on Jul 16th
Estimated Commission (round trip): $3.90
