Stock Symbol: [private_monthly]GLD[private_monthly]
Option Strategy: bull put spread
Price at trade post: $156.15
Reasoning: We expect [private_monthly]GLD[private_monthly] to find support at its 200 day moving average (approximately $148). As long as [private_monthly]GLD[private_monthly] stays above $136 by October expiration (Oct 21), we'll net a 9.89% return in under a month. The probability of staying higher than $136 by Oct exp is 87%.
Trade Details:
[private_monthly]
STO -4 GLD OCT11 136 puts
BTO 4 GLD OCT11 134 puts
for a net credit of $0.18 per contract
Requirements:
Cost/Proceeds: ($72)
Option Requirement: $728.00
Total Requirements: $728.00
Estimated Commission $12.50
[/private_monthly]
Max Risk: $728
Profit Range: $134.82 + by Oct exp
Max Profit: $72 or 9.89% @ $135 + by Oct exp
Suggested Stop: $140
Non-members, click here for access
Speak Your Mind