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!
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