*****UPDATE***** 5/21/12 12:34 PM

WITH NO MOVEMENT IN $GLD TODAY, DECAY IS KILLING THE POSITION. THIS IS THE ABSOLUTE WORST AND MOST UN PROBABLE THING THAT COULD HAVE HAPPENED TO THE POSITION. HAD THERE BEEN MOVEMENT OF 1$ OR MORE EITHER WAY, IT WOULD HAVE MORE THAN OFFSET THE DECAY FROM BOTH SIDES.

WITH ALL THIS IN MIND TODAY, GLD BEING IN NEUTRAL MAKES ME UNCOMFORTABLE AND CLOSED THE POSITION @2.32 CREDIT WITH 17% LOSS. CAPITAL PRESERVATION IS KEY. ALWAYS RECOGNIZE WHEN A GOOD TRADE GOES BAD AND EXIT ACCORDINGLY.

TIME TO MOVE ON TO OTHER TRADES

6 CONTRACTS SPREAD

$48 LOSS PER CONTRACT SPREAD = $288 LOSS

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$GLD has been on tear the last few trading sessions, volatility is rising, and fear is all abound. Even the much renowned Facebook IPO was a dud.

I feel GLD has a real potential to pop thru 160 by MAY25 expiry, but if it doesn’t; it may fall back below 150 on a sustained rally next week.

This trade will still have some value in it no matter what unless GLD finishes right at 155 MAY25.

Max gain is 76% if GLD above 160 MaY25 , or below 150 MAY25

Losses will start to gather if GLD stays between 152.20, and 157.80, max loss is 100% only if stays at 155.

Breakeven points are 155+2.80=157.80 call side

or 155-2.80=152.20 put side.

Your Order Has Been Submitted
Order Details
You have entered a condor.
Leg Action Contracts Option Description Price Duration
Leg 1 Sell to Open 6 GLD Put GLD May 25 2012 150.00 Put Debit 2.80 Day Order
Leg 2 Buy to Open 6 GLD Put GLD May 25 2012 155.00 Put Debit 2.80 Day Order
Leg 3 Buy to Open 6 GLD Call GLD May 25 2012 155.00 Call Debit 2.80 Day Order
Leg 4 Sell to Open 6 GLD Call GLD May 25 2012 160.00 Call Debit 2.80 Day Order

Quote GLD   154.35   1.55 Bid 154.32 Ask 154.34 Volume 6,678,149
GLD MAY 25 2012 150.00 PUT
GLD MAY 25 2012 155.00 PUT
GLD MAY 25 2012 155.00 CALL
GLD MAY 25 2012 160.00 CALL
Bid 0.45 2.12 1.47 0.32
Ask 0.46 2.13 1.48 0.34
Last 0.44 2.10 1.50 0.38
Change -0.43[-49.43%] -1.10[-34.37%] 0.41[37.61%] 0.13[52.00%]
Volume 272 825 2,155 343
Delta -0.16 -0.55 0.45 0.11
Open Int 382 32 664 423
Desc GLD May 25 2012 150.00 Put GLD May 25 2012 155.00 Put GLD May 25 2012 155.00 Call GLD May 25 2012 160.00 Call
Net Quote
Bid
2.79debit
Mid
2.81debit
Ask (natural)
2.84debit

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