SPDR Gold Shares (GLD)

Update 10/13/2021: I exited my long call position on GLD 21 days before expiration, for a $5.31 credit per contract/share, a profit before fees of $116 per contract. Shares were trading at $167.55, up $3.16 from the entry level.

The Implied Volatility Rank at exit was 14.7%, down 13.2 points from the entry level.

My decision to exit was based on a sharp rise in the chart followed by a pause. In other words, anticipating a correction, I took the money and ran.

Shares rise by 1.9% over 13 days for a +54% annual rate. The options position produced a 28.0% return for a +785% annual rate.

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I have entered a long call on GLD, using options that trade for the last time 78 days hence, on December 17. The premium is a $4.15 debit per contract share and the stock at the time of entry was priced at $164.39.

The Implied Volatility Ratio stands at 28.9%.

The position must be managed by October 15, which 63 days before the last trading day.

Premium:	$4.15	Expire OTM
GLD-long option	Strike	Odds	Delta
Call
Long	165.00	54.0%	49

I entered the position based on a buy signal from the Fisher Transform on a daily chart.

By Tim Bovee, Portland, Oregon, September 30, 2021

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

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Based on a work at www.timbovee.com.