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Friday, July 29, 2016

Gold (GLD) Custom Ratio Spread

Wed. 7/20/2016 (11:58:07 am, PT)  RD

sell to open -3 Aug 2016  $123 puts at $1.14667 (31% prob ITM)
buy to open +1 Aug 2016  $120 put at $0.48
  • net credit received:  $2.96 (or $296)

Why did I place this trade?
  • stochastics in oversold region
  • 69% probability of success
  • long put is "insurance"

Fri. 7/29/2016 (12:04:39 pm, PT)

buy to close the 3 short puts at $0.18
sell to close the 1 long put at $0.06
  • net debit spent:  $0.48 (or $48)

PROFIT:  $248 (in 9 days)

Success!