We have another monster trade working here and we timed it almost perfectly.
Back on January 26, I suggested buying March GLD 108/112 call spread for $1.50 debit, and selling GOLD March 65/70 bull put spread for $1.85 credit.
The original post can be found here: http://fahadstockworld.blogspot.com/2010/01/gold-gld-and-rangold-resources-gold.html
This morning, the GLD call spread has expanded from $1.50 to $1.95 (about 27% profit) and GOLD bull put vertical has shrunk from $1.85 to $1.35 (also 27% profit). While I would love to hold both positions longer, but as I have said before, this market has no memory from day to day. With gold trading up almost $30 today, I am taking profits on both of them.
About Me
- Fahad Khalid
- Chicago, IL, United States
- I have Masters in Business (Accounting and Finance 2003) from Michigan State University. I have been trading the market since 1998. Prior to picking up trading as a full-time career in 2008, I was a management consultant at Alvarez & Marsal and Conway MacKenzie for four years. I provided turnaround, crisis management and restructuring services to financially distressed firms. Prior to working in turnaround, I worked in Audit & Assurance at Deloitte & Touche for two years. Trading in the market has always remained my side business ever since I started college. 90% of the time, I trade through options. I love volatility skews and positive Theta plays. While I make a lot of directional bets, in general my favorites are to take advantage of high implied volatilities through calendar or butterfly spreads and vertical credit spreads. I never buy straight calls or puts and I do a lot of exotic multi-leg option trades.
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