SPY Position Update
SPY closed at $142.18 on Friday – the August position closed approx. $300 in the black

The August 1st Couch Potato published an August expiration month SPY bear call spread
On August 15th we suggested closing out the call spread for an approx. $300 gain (see tables below)

The August 13th Couch Potato published a September expiration month SPY bear call spread (see table below)

SPY Risk Analysis
We have not had the opportunity to open a put spread, therefore the only risk is prices continuing to creep up and threatening our September $144 strike price short call.

TLT Position Update -------------------------------------------------------------
TLT closed at $121.60 on Friday – the August position closed approx $1,100 in the black

The July 16th Couch Potato published an August expiration month TLT bear call spread
On August 8th we suggested closing out the call spread for an approx. $1,100 gain (see tables below)

The August 9th Couch Potato published a September expiration month TLT bull put spread (see table below)

TLT Risk Analysis
We have not yet had the opportunity to open a September call spread and the risk is Treasury notes continuing to crash which would threaten our September $121 strike price short put.

GLD Position Update --------------------------------------------------------------
GLD closed at $156.72 on Friday – the August position closed approx. $2,200 in the black

The July 17th Couch Potato published an August expiration GLD call spread
On August 16th we suggested letting the call spread expire worthless for an approx. $1,000 gain (see tables below)

The July 17th Couch Potato published an August expiration GLD put spread
On August 16th we suggested letting the put spread expire worthless for an approx. $1,200 gain (see tables below)

The August 13th Couch Potato published a September expiration month GLD bear call spread (see table below)

GLD Risk Analysis
We have not had the opportunity to open a September put spread, therefore the risk is gold prices surging and encroaching on our September $163 strike price short call.

Exit Plan
Anytime the market maker is willing to accept a limit price of less than .10 on one of our short strikes, buy back all the short contracts and sell the long positions on the same spread. However, if it is a week or so prior to the expiration date, we may be able to hold out for a .05 (or less) bid.

If one of our short strikes is penetrated (closing price above a short call or below the short put) AND the delta rises to .65 we will look to close out this spread (buy the short contracts, sell the long) and roll it out to another short strike price. Unless this is option expiration week, do not panic and rush to close the trade, many times the market will reverse itself and remove the sense of urgency. If one of our short strikes has been violated and there is no price reversal, we cut our losses and live to fight another day.

Happy Trading

Gregory Clay

Couch Potato Trader Disclaimer
All results reported in this section are hypothetical. While the numbers represented here may have been achieved or beaten by our readers, we make no representation that any individual investor achieved these exact results. The tracking for the plays listed in this section uses closing prices for the day the newsletter is published and it is not meant to imply that any reader actually received those prices (though many often do) or participated in these recommendations (even though many do). The portfolio represented here is hypothetical and for investment education purposes only. It is only an illustration of what type of gains a knowledgeable trader might receive utilizing these strategies. If you don't get close to these results, guess what. It isn't the fault of the strategies.