sold -10 June 30, 2016 $129 calls at $0.91
Why did I place this trade?
- "BREXIT" results were announced in the middle of the night and gold jumped 5%
- when GLD rises, its implied volatility also rises which results in very attractive call premiums
- 73% probability of success
- stochastics in overbought region
Tuesday, 6/28/2016 (10:53:58 am, PT)
bought back all 10 calls at $0.19
Why did I place this trade?
- GLD dropped today (6/28)
- when GLD drops, its implied volatility also drops which results in cheaper call premiums
- TAKE PROFITS
Comments:
It's VERY tempting to hold my position for TWO more days in order to keep the max credit of $910, but it's good practice to always TAKE YOUR PROFITS
PROFIT: $720 (in 3 trading days)
SUCCESS!
