September quarterly options expire tomorrow and we need to exit our GLD quarterly call and put spreads. As confirmed in the chart below gold prices were trying to turn down until today when it was reported that China may implement more economic stimulus. This news ignited the inflation boogie again and gold surged as traders started buying it to hedge.
GLD Position Update -----------------------------------------------------------
GLD closed at $172.34 on Thursday â€“ the September position is approx. $2,700 in the red
The August 13th Couch Potato published a September expiration month GLD bear call spread
On September 12th we published a call spread trade adjustment rolling the $163 short call out to the September quarterly end-of-month expiration $171 strike price and increasing the number of contracts
We plan on immediately closing out this position tomorrow for an approx. $5,000 loss (see tables below)
The September 12th Couch Potato published a September Quarterly end-of-month expiration month GLD bull put spread
We will let the put spread expire worthless tomorrow for an approx. $2,300 gain.
Unless gold prices gap down hard at the start of trading tomorrow, we plan on exiting the GLD September quarterly call spread in the morning. If prices do gap lower, we still need to exit the call spread after prices settle and we can get a better price. As mentioned above, the September put spread will expire worthless.
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.