Buy one contract SLV May 2011 34.00 put @ $0.3827 SLV @ $34.13 http://finance.yahoo.com/q?s=SLV110521P00034000 Buy one contract GLD May 2011 145.00 put @ $0.4102 GLD @ $145.57 http://finance.yahoo.com/q?s=GLD110521P00145000 Total debt = $79.29 commissions included. Options expire tomorrow.
UPDATE: Now that the market is closed I can see were I stand on this trade. SLV must drop 2% and GLD must drop 0.75% to break even. Any drop greater than 2% and 0.75% is profit.
UPDATE: Closed the SLV put @ $0.14 Unfilled Limit order on the GLD put to sell @ $0.02. Loss about $66.00 Closing at 10:00am EST would have produced a small profit, about $20.00.
UPDATE: Now that the market is closed and options expired I can look back on this trade. I'm still bearish on silver, back to below $20.00. Buying the GLD 146.00 call / 145.00 put option strangle would have cost about $0.81, sold for about $1.50. Might consider a one day strangle on GLD next time, just before expiration.
UPDATE I will keep you posted on this trade. GLD has weekly options and I'm considering a strangle on Wednesday or Thursday with the May 27 options. Should cost about $0.80, strikes will depend on what GLD is trading at on Wednesday or Thursday.
UPDATE: GLD 150/147 strangle GLD at $148.67 Buy 1 contract GLD May 2011 150.00 call at $0.3172 http://finance.yahoo.com/q?s=GLD110527C00150000 Buy 1 contract GLD May 2011 147.00 put at $0.2072 http://finance.yahoo.com/q?s=GLD110527P00147000 Total Debt: $52.44 commissions included Options expire: May 27, 2011