12/21/21 Update – Closing this GLD Iron Condor for a profit. Just 2% shy of my 50% profit target, we closed for a $52 debit, or a $48 profit per contract. 12% ROI.
- Bought to Close 1 GLD 01/21/22 Put 156.00 @ 0.29
- Bought to Close 1 GLD 01/21/22 Call 174.00 @ 0.61
- Sold to Close 1 GLD 01/21/22 Put 151.00 @ 0.15
- Sold to Close 1 GLD 01/21/22 Call 179.00 @ 0.23
| What’s the GLD Trade? With GLD at $165, and the IVR over 50%, consider selling a 151/156/174/179 Iron Condor. My plan is to close once IVR decreases and the trade is worth $50. At that point, I’ll buy to close for 50% of what I collected. – Bought 1 GLD 01/21/22 Put 151.00 @ 0.54 – Bought 1 GLD 01/21/22 Call 179.00 @ 0.52 – Sold 1 GLD 01/21/22 Put 156.00 @ 1.03 – Sold 1 GLD 01/21/22 Call 174.00 @ 1.03 Total Premium Collected: 100$ Total Risk: 400$ Risk Reward: Risk $400 to make $100 Rationale: This is a defined risk trade. You can make up to $100 by 1/21 if GLD is trading between 156 – 174 at expiration. Probability of making 50% or 50$ : 81% Theta Decay: As of 12/2, this trade will pay you $1.52 in daily theta decay until expiration. Assumption: Neutral Timeframe: ~1-6 weeks – Jerry |