this is a call fly on MPEL .... 1 strike wide.. for next months expire... take a look at it... i'll post a few more as i am looking at a trade on this for a friend... i'll post 2 strike wide.. otm etc.. etc.. you can do this with all puts or calls... or iron butterfly where the center strike is short a put and a call and the wings are a put on the down side.. and a call on the upside.. <a target='_blank' title='ImageShack - Image And Video Hosting' href='http://imageshack.us/photo/my-images/163/mpelfly.png/'><img src='http://img163.imageshack.us/img163/8908/mpelfly.png' border='0'/></a><br>Uploaded with <a target='_blank' href='http://imageshack.us'>ImageShack.us</a>
you know what... i'll post a couple flys on the GLD how about that.. i wouldn't mind following a few trades with ya.. i've always watched gld.. make a little money with a backspread a while ago... Say if you have a target thats otm a few strikes.. its cheap to put a long butterfly with the center strike right at your target.. and if it gets their well before expiration you'll be able to trade out of it for a profit..
ok here we go... this is a fly that is 4 striked.. 159_163_167 cacti do you have a target? if you think its really gonna break out .. flys do get cheaper as you go farther otm.. <a target='_blank' title='ImageShack - Image And Video Hosting' href='http://imageshack.us/photo/my-images/826/gldcallfly159163167stri.jpg/'><img src='http://img826.imageshack.us/img826/7881/gldcallfly159163167stri.jpg' border='0'/></a><br>Uploaded with <a target='_blank' href='http://imageshack.us'>ImageShack.us</a>
GLD chart is looking good. 170 seems very realistic in the near term. Some stats from the past: Late Summer-Autumn Rally 2009: approx. +30%. Late Summer-Autumn Rally 2010: approx. +25%. Late Summer-Autumn Rally 2011: approx. +30%. If the thesis is correct, and this year's rally began at 150: +25% = GLD at New All Time High! +30% = GLD at 195!
ok.. lets think about it this way.. we are a month away from sept expiration.. if we picked that one.. 30 days away considering we are 12 dollars into the rally.. where would that put us come expire .. generally speaking?