TRADE CLOSED 6/19/12 @13.00 DEBIT

THAT WAS A BREAKEVEN TRADE, AS WE RECEIVED 13.00 CREDIT TO OPEN THE TRADE.

*****UPDATE***** 6/15/12 9:54AM

I FORGOT TO UPDATE THIS YESTERDAY, OUR DAY ORDER ON 6/13 NEVER FILLED. WE NOW STILL HAVE THE POSITION OPEN INTO NEXT WEEK, HOPING FOR FURTHER HINTS AT QE3. FURTHER HINTS AT QE3 WILL SKYROCKET GLD HIGHER FROM HERE.

HAPPY WEEKEND ALL

*****UPDATE***** 6/13/12 11:33AM

SET BUY TO CLOSE AT 9.50 DEBIT.

WE OPENED THIS TRADE AT 13.00 CREDIT

WOULD GIVE 350$ X 3CONTRACT SPREAD LOTS=  $1050 PROFIT

WE MAY RE-ENTER THIS TRADE FOR A HIGHER CREDIT ALL OVER AGAIN.

BUT IF WE GET THE 3.50 CREDIT HERE THE MAX LOSS ON OUR OTHER GLD RESCUE HEDGE AGAINST THIS TRADE IS 2.60.

IF THIS ORDER EXECUTES @3.50 PROFIT, WE WILL NOW NO LONGER FACE ANY POSSIBLE LOSS, AND HAVE A GAURANTEED .90 PROFIT ALTOGETHER NO MATTER WHAT.

Order Details

You are entering a free form.
Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Close 3 GLD Put GLD Jul 21 2012 175.00 Put Debit 9.50 Good Til Cancel
Leg 2 Sell to Close 3 GLD Put GLD Jul 21 2012 155.00 Put
Leg 3 Sell to Close 3 GLD Call GLD Jul 21 2012 155.00 Call
Leg 4 Buy to Close 3 GLD Call GLD Jul 21 2012 175.00 Call
Est. Trade Value: $2,850.00
Quote GLD   157.34   0.88 Bid 157.34 Ask 157.36 Volume 5,078,704
GLD JUL 21 2012 175.00 PUT
GLD JUL 21 2012 155.00 PUT
GLD JUL 21 2012 155.00 CALL
GLD JUL 21 2012 175.00 CALL
Bid 18.00 3.25 5.65 0.58
Ask 18.35 3.35 5.75 0.61
Last 18.65 3.25 5.71 0.56
Change N/A [N/A] -0.35 [-9.72%] 0.71 [14.20%] 0.11 [24.44%]
Volume 0 2,643 422 219
Delta -0.93 -0.40 0.60 0.07
Open Int 56 27,561 27,737 10,638
Desc GLD Jul 21 2012 175.00 Put GLD Jul 21 2012 155.00 Put GLD Jul 21 2012 155.00 Call GLD Jul 21 2012 175.00 Call
Net Quote
Bid
9.48debit
Mid
9.77debit
Ask (natural)
10.06debit

*****UPDATE***** 5/22/12 9:51 AM

JUST LOGGED INTO TRADE ACCOUNT AND THE ORDER FILLED. ITS CURRENT QUOTE IS 13.27 CREDIT, SO WAS PRETTY CLOSE TO GUESSING WHAT THE CREDIT WOULD BE AT THE OPEN. NOW THAT I’M IN, IF $GLD HITS MAX PAYOUT AT 175 BY JULY21, IT WILL BE A 471% GAIN. MY CALCULATIONS WERE $700 RISK PER SPREAD DIVIDED BY 3300 MAX GAIN PER SPREAD (2000+1300 CREDIT RECV’D) =4.71 OR 471%

*********************************************************************

Taking a stab at $GLD yet again. This time will be a rare wild hedge trade, with max loss per spread @around 700-800 dollars, but max gain around 3200-3300 per spread. Gold futures are dropping like a rock tonight and will give perfect entry into this trade. Currently tonight it is sitting around $12 credit per spread, my order overnight into the open will be initially set at 13.00 credit for the trade. I will adjust near the open if necessary, but really like this trade!

I’m a wild and crazy guy, so this is essentially a repeat of the wild $HD trade https://3ddhedgeinvestments.wordpress.com/2012/05/14/207/ format, and will post a payout chart later.

Heres a preview of the payouts if receive 13.00credit to open the trade:

Max Loss $GLD @ 155 or below by July21 ($700) loss per spread

Break-even $GLD  @158.50  July21 ($0) loss per spread

Profit from 158.50 up to the max at 175

Max Gain $GLD @175 or above by July21 3300 Gain Per Spread, or 471% gain

Trade Plan if things go wrong.

I will try to roll the losing Put credit spread into a more favorable position if necessary and maybe avoid any losses at all. I absolutely love  this trade and feel $GLD about ready to rip and roar over the summer Peeps!

Here are a few links to back up my thesis as well.

http://blog.mktgeist.com/2012/05/22/cftc-managed-money-short-positioning-high-for-gold-silver/

http://chart.ly/ey89aj7

http://seekingalpha.com/article/633001-gold-2000-are-we-joking?source=yahoo

trade preview

As of: 05/22/12 5:55 AM ET
Order Details
Leg Action Contracts Option Description Price Duration
Leg 1 Sell to Open 3 GLD Call GLD Jul 21 2012 175.00 Call Credit 13.00 Day Order
Leg 2 Buy to Open 3 GLD Call GLD Jul 21 2012 155.00 Call
Leg 3 Buy to Open 3 GLD Put GLD Jul 21 2012 155.00 Put
Leg 4 Sell to Open 3 GLD Put GLD Jul 21 2012 175.00 Put
Est. Option Reqs: Creates Debit Spread Credit Spread: $6,000.00
Est. Trade Value: $3,900.00
Est. Commission: $10.75
Estimated Fee: $0.48
Net Trade Value: Credit: $3,888.77
Funds required for this trade: $2,111.23
Quote GLD   154.65   N/A Bid 153.14 Ask 153.18 Volume 66,466
GLD JUL 21 2012 175.00 CALL
GLD JUL 21 2012 155.00 CALL
GLD JUL 21 2012 155.00 PUT
GLD JUL 21 2012 175.00 PUT
Bid 0.61 4.55 4.80 20.70
Ask 0.64 4.65 4.85 21.05
Last 0.62 4.59 4.94 20.22
Change -0.14 [-18.42%] -0.46 [-9.11%] -0.56 [-10.18%] N/A [N/A]
Volume 52 402 2,386 0
Delta 0.08 0.51 -0.49 -0.92
Open Int 8,996 10,154 11,119 20
Desc GLD Jul 21 2012 175.00 Call GLD Jul 21 2012 155.00 Call GLD Jul 21 2012 155.00 Put GLD Jul 21 2012 175.00 Put
Net Quote
Bid (natural)
11.81credit
Mid
12.07credit
Ask
12.34credit

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