Negative $16 per share proud...which is much better than if I buy GLD today at $116 -- then I would be negative $26 per share proud.
--- In ConservativeOptionS
>
> 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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