Trading Gold

The GLD Bull Put SpreadRik Rasmussen

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GLD BULL PUT SPREAD AUG 11shares per contract 100contracts sold 5contracts bought 5total share pairs 500strike sold $149.00strike bought $146.00difference in strikes $3.00net collected per share $1.20premium collected = 500 * $1.20 $600.00potential max profit = same as above $600.00potential spread loss = 500 * $3.00 $1,500.00less premium collected -$600.00potential trade loss $900.00"buying power effect" -$900.00profit target is 80% + of premium Premium $1.20 80% $0.96 500 $480Price target to buy back and close 20% $0.24Price of spread at close 7/22 $0.275Profit at target $480.00"Investment" in trade $900.00Profit % 53.33%Open date 6/17/2011Expiration Date 8/20/2011