Follow me on Twitter!

Follow me on Twitter!

Friday, February 20, 2015

Gold (GLD) Feb Bull Put Spread

12/29/2014 (11:59:47 am, PT)

This is a BULL PUT SPREAD (aka credit put spread)

-2 February 2015  $112 puts at $2.45
+2 February 2015  $111 puts at $2.09

Why did I place this trade?
  • stochastics in oversold region (see chart)
  • amount of capital required:  $200


2/13/2015 (6:57:23 am, PT)

buy (to close) the 2 short puts ($112 strike) at $0.04

Why?  
  • stochastics in oversold region (see chart)
  • to remove the risk of losing $$$ in case GLD continues lower and closes below $112 on expiration Friday
  • leaving the long put ($111 strike) open gives me the opportunity to make some extra $$$ if GLD plunges in the next 7 days


2/20/2015 (expiration)

GLD closed at $115.28 (see chart)

my long put expired "worthless"


NET PROFIT:  $53.83  (ROC 27% in 7.5 weeks)


Success!



SELL VERTICAL PUT SPREADS and GET PAID immediately.
Learn on your own for FREE (my YouTube videos) or
Pay for 1-on-1 training (details here).