chuck how proud are you if gld is 90 at expiration..
--- In ConservativeOptionS
>
> I've traditionally been a Covered Call guy but I've been considering the following trade and would like to hear feedback from more experienced options traders.
>
> My underlying belief is that GLD will continue to climb.
>
> Here's the trade:
>
> STO 4 GLD Mar 106 Puts @ $2.50
> BTO 2 GLD Mar 118 Call @ $4.85
>
> The trade will execute at a cost of around $0.
>
> If GLD rises above 118 - I participate dollar for dollar.
> If GLD falls below 106 - I'm the proud owner of 400 shares or I roll forward.
> If GLD stays in a narrow trading range - nothing gained, nothing lost.
>
> Feedback?
>
> Chuck F.
>
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