Follow me on Twitter!

Follow me on Twitter!

Thursday, August 14, 2014

Gold (GLD) August Put Options

7/22/2014 (RD)

Sold (to open) 2 August 2014 $124.50 puts at $1.23

Reasons for initiating this trade:
  • probability of success:  60%
  • bottom of stochastics (see chart)


8/14/2014

bought back both puts at $0.04
(this trade filled while I was still asleep!)

NET PROFIT:  $228.44





THE LESSON


  • On 7/22, GLD traded between $125.47 and $126.43.
  • On 8/14, GLD traded between $126.13 and $126.53 (see chart).
  • If I had bought 200 shares of GLD on 7/22 and sold them on 8/14, I would have broken even.
  • However, by SELLING GLD PUT OPTIONS instead, I made $228.44!

----------------------------------------------

Learn to SELL PUT OPTIONS.  It's easy, fun and profitable.
Learn on your own for FREE (www.youtube.com/user/moneyandlilia) or pay for 1-on-1 training (click here for details).