*****UPDATE*****5/23 6:47PM

WELL $GLD RECOVERED NICELY TODAY AFTER THIS RESCUE HEDGE WAS DEPLOYED. THINK OF THIS RESCUE HEDGE AS A PAWN IN A GAME OF CHESS. I AM WILLING TO SACRIFICE THIS HEDGE TRADE AS A COMPLETE LOSS, BUT WILL SAVE MY ASS IF $GLD SHITS THE BED.

THIS TRADE WILL ALSO BE EXITED EARLY, IF IN FACT $GLD DOES SHIT THE BED TO BELOW 140 IN THE NEXT FEW WEEKS.

UPON THE EXIT IN THAT SITUATION I WILL TAKE IN ABOUT 85% OF THE POTENTIAL TOTAL VALUE OF $2220 OR ABOUT $1900.

I WILL THEN FEEL FREE TO SIT BACK AND LET THE ORIGINAL SPREAD  https://3ddhedgeinvestments.wordpress.com/2012/05/22/gld-offset-long-trade-with-built-in-hedges-20-of-3dd-hedge-account-allocated/

WORK ITS MAGIC.  IF IT DOESN’T, SO WHAT, I WILL HAVE LOST ONLY A COUPLE HUNDRED BUCKS DUE TO THE PROTECTION HEDGE.

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THE $GLD TRADE CURRENTLY IN TROUBLE IS THIS ONE https://3ddhedgeinvestments.wordpress.com/2012/05/22/gld-offset-long-trade-with-built-in-hedges-20-of-3dd-hedge-account-allocated/

I AM GETTING MY ASS KICKED ON THAT TRADE AND HANDSOMELY DOWN IN TWO DAYS WITH THE PARABOLIC MOVE DOWN. INSTEAD OF A STOP OUT, I EMPLOYED A HEDGE TRADE WHICH IS MENTIONED BELOW.

THIS NEW TRADE WILL OFFSET ANY LOSSES , AND ALLOW US TO BREAK EVEN IF WRONG ON THE BULLISH $GLD TRADE. THIS WILL REPLACE ALMOST ALL LOSSES IF $GLD FINISHES JULY21 BELOW 140.

IF FINISHES ABOVE 145 BUT BELOW 155 TOTAL LOSSES THEORETICALLY WOULD BE EXPERIENCED ON BOTH TRADES. THEORETICAL ONLY BECAUSE THAT’S NOT TAKING INTO ACCOUNT ROLLS COULD HAPPEN.

THIS TRADE PUTS AT RISK 1/3  OR APPROXIMATELY $700 OF MY FULL BULLISH $GLD TRADE WHERE HAVE 3 CONTRACT SPREADS AND 2100 AT RISK TO LOSE.

3 CONTRACT SPREADS X(500) +240 X3 SPREADS= 2220 POTENTIAL TOTAL VALUE IF BELOW 140.

Your Order Has Been Submitted

Order Details

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Leg Action Contracts Option Description Price Duration
Leg 1 Buy to Open 3 GLD Put GLD Jul 21 2012 145.00 Put Credit 2.40 Day Order
Leg 2 Sell to Open 3 GLD Put GLD Jul 21 2012 140.00 Put
Leg 3 Sell to Open 3 GLD Call GLD Jul 21 2012 140.00 Call
Leg 4 Buy to Open 3 GLD Call GLD Jul 21 2012 145.00 Call
Quote GLD   149.36   -2.72 Bid 149.37 Ask 149.40 Volume 5,708,090
GLD JUL 21 2012 145.00 PUT
GLD JUL 21 2012 140.00 PUT
GLD JUL 21 2012 140.00 CALL
GLD JUL 21 2012 145.00 CALL
Bid 2.87 1.62 11.00 7.30
Ask 2.89 1.65 11.30 7.45
Last 2.87 1.62 14.20 7.45
Change 0.96[50.26%] 0.58[55.77%] N/A [N/A] -1.80[-19.46%]
Volume 258 152 0 68
Delta -0.35 -0.21 0.79 0.65
Open Int 4,493 6,843 145 411
Desc GLD Jul 21 2012 145.00 Put GLD Jul 21 2012 140.00 Put GLD Jul 21 2012 140.00 Call GLD Jul 21 2012 145.00 Call
Net Quote
Bid (natural)
2.18credit
Mid
2.40credit
Ask
2.68credit

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