• About WordPress
    • WordPress.org
    • Documentation
    • Support
    • Feedback
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

IWO Trading Floor

Become a Great Options Trader

  • Customer Center

Income Trade in GLD

Home › Forums › Income Trades › Income Trade in GLD

  • This topic has 1 reply, 1 voice, and was last updated 7 years, 11 months ago by Steven Place.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 14, 2014 at 8:46 am #2139
    Steven Place
    Keymaster

    With the decent drop down 2+%, gold has now defined super clear support and resistance.

    gld-range

    Here are a few reasons I like calendars over flys:

    – The Aug/Sep term structure is flat, meaning you aren’t getting screwed by selling low vola nd buying high vol.
    – If GLD moves again, the calendar will roll up on the volatility smile, so IV rise can hedge against any short gamma losses
    – Overall IV is pretty low. It already has run up 2% from 14% to 12% so it could drop (and that’s the risk)

    This is a tiered structure. Look to add to the trade iF GLD moves 2.5 points

    Buy to Open GLD Aug/Sep 125 call calendar at .77 or lower

    gld-risk

    July 30, 2014 at 9:18 am #2140
    Steven Place
    Keymaster

    Didn’t need to do much here…. we can close out at a return of 23% on capital and take the base hit.

    gld

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

This is the Forum Sidebar Widget Area. You can add content to this area by visiting your Widgets Panel and adding new widgets to this area.

© 2021 Global Profit Systems International