GLD – 10/2016 Lookback trade

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

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