Stock / Symbol: Gold ETF / GLD
Strategy: Diagonal Call Spread
Trade post date: 24 Jun 2021 / $166.43
Price at this post: $169.45
Reasoning: With GLD trading up to our short call strike, I'm going to close out the trade here for about a 6% return . As the long 162.5 strike put is essentially worthless, I'm not going to attempt to sell it.
Trade Exit Order:
STC 1 GLD 17Dec21 167 call
BTC 1 GLD 16Jul21 170 call
For a min net credit of $6.80 per contract (GTC order, limit order). The mid is currently at a credit of $6.85. I was just filled at $6.80
Analysis:
Max Risk: $645
Max Reward: $140 or 21.7% with GLD at $170 on Jul 16th
Profit Range: GLD under $159 by Jul 9th (or) at $170 at market close on Jul 16th
Estimated Commission (round trip): $3.90
Realized Profit / Loss: $42 or 6.5% (pre commission)
