SLV / GLD one day put trade

Discussion in 'Options' started by ForexForex, May 19, 2011.

  1. 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.
  2. 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.
  3. 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.

    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.