GLD – 10/06/1016

GLD had been gaping down and I decided to take a chance that it had bottomed out. Somewhat risky trade, but it worked out.

I ended up with a pretty good return although trading a stock based on the fact you think it has bottomed out is not always the best idea. When I opened the trade GLD was trading at $119.32. When I closed it was at $119.97. It had some up and down swings in the 19 days I was in the trade but nothing that concerned me.

On 10/25 I decided to take my profits instead of waiting for the NOV16 expiration. GLD had tested the $119.00 level a few times and I did not want to take a chance on it breaking through. Figured better to close with realized profits, which is something I do frequently. Made $390.00 on about $2,410.00 in risk for a 16.2% return.

Date	Sym		Exp	Strike	Price	C	Type	Cost	Balance
10/06/16	GLD	BTO	NOV16	$113.00	-$0.48	10	Put	-$480.00	-$480.00
10/06/16	GLD	STO	NOV16	$116.00	$1.07	10	Put	$1,070.00	$590.00
10/25/16	GLD	STC	NOV16	$113.00	$0.08	10	Put	$80.00	$670.00
10/25/16	GLD	BTC	NOV16	$116.00	-$0.28	10	Put	-$280.00	$390.00
								Profit:	$390.00