Another GLD Autumn Rally?

Discussion in 'Options' started by cactiman, Aug 11, 2012.

  1. Cereal

    Cereal

    My new metals related positions opened today:

    SLW OCT12 Vertical spread
    Sold 1 Put of $34 for 1.96
    Bought 1 Put of $32 for 1.13
    Gross credit received + 0.81

    Max Reward: Credit received minus comm
    Max Risk: - 119 + comm
    BE: 33.19

    Objective: Will close position when I can obtain a net result of 80% of initial credit received.
    *
    GDXJ OCT12 Butterfly
    Bought 1 Call of $22 for 1.38
    Sold 2 Calls of $23 for 0.88
    Bought 1 Call of $24 for 0.58
    Gross debit paid - 0.20

    Max Reward: 80 minus comm
    Max Risk: Initial debit paid
    BE: > $22.15 and < 23.85

    Objective: Will close position when I can obtain 50% of max reward, that is 40

    ***

    Comments always welcome.
     
    #51     Aug 23, 2012

  2. Run up?
    How about leap up?
    :D
     
    #52     Aug 23, 2012
  3.  
    #53     Aug 23, 2012

  4. Less complex trades for me (all I know how to do!), with lots of time till expiration (helps me sleep better!):
    January GLD 150/149 Bull Put Spreads
    January GLD 165/164 Bull Put Spreads
    March GLD 175 Calls
    March SLV 30 Calls
    :cool:
     
    #54     Aug 23, 2012
  5. theres nothing complex about butterflys... great risk reward.. they get cheaper and cheaper as you go otm.. cheap bets on the market going up...
    synthetics give you great leverage.. nothing complicated there either..
    same risk as Underlying with a hell of alot less outlay...

    butterflys are a little better then otm calls because they keep their value over time better and you still get a good payout .. and you don't even have to be nearly right to make money
     
    #55     Aug 23, 2012

  6. Read about them both in passing, but haven't tried them yet.
    Like what you're saying about Butterflies. Will check those out first...
     
    #56     Aug 23, 2012

  7. WRONG ...... Butterflies are cheapest when the body is ATM and the wings 1 strike OTM. And an OTM butterfly is useless.
     
    #57     Aug 23, 2012
  8. <font size="20"><font color="green"><b>LET ME SHOW YOU</b></font>

    <font size="3">
    aapl call flys on the weeklys..

    ATM 660/665/670 = 1.09
    OTM 665/670/675 = .79
    OTM 670/675/675 = .38 </font>
     
    #58     Aug 23, 2012

  9. These are "Iron Butterflies" you're talking about?
    Have some articles and videos about those already in my 'peuter.
     
    #59     Aug 23, 2012
  10. iron butterflys are just using both puts and calls...

    the examples i used are all calls... 1 call lower strike -2 calls next strike up 1 call another strike up.. i'll show you a picture here in a sec
     
    #60     Aug 23, 2012