{"id":1748,"date":"2020-08-18T17:51:19","date_gmt":"2020-08-18T17:51:19","guid":{"rendered":"https:\/\/tradejolt.com\/wordpress\/?p=1748"},"modified":"2020-08-20T22:44:18","modified_gmt":"2020-08-20T22:44:18","slug":"gld-milking-my-rented-cow-day-3","status":"publish","type":"post","link":"https:\/\/tradejolt.com\/wordpress\/gld-milking-my-rented-cow-day-3\/","title":{"rendered":"GLD – Milking My Rented Cow – Day 3"},"content":{"rendered":"
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GLD thumbnail 18 August 2020<\/figcaption><\/figure>\n

As the thumbnail image shows, yesterday afternoon GLD rose from 183 to 186. I had prophylactically sold a 186\/185 bear put spread if GLD rose to 186, which brought in $0.50 of revenue per share. Now I was holding a -1 +1 -1 \"ladder\" spread. I did not have time to deal with this until midday, as I was heavily involved in some much larger positions that required my attention.<\/p>\n

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GLD multiple rolls 17 and 18 August<\/figcaption><\/figure>\n

By the time I did address the GLD position, at around 1pm, GLD was trading around $188.47. Ideally, I would want to be short the 188 strike. So I closed the lower 2 rungs of the ladder, to simplify my positions. I bought back the 187 AUG 21 puts sold at $2.27 for $1.10, sold the 186 puts bought for $1.77 at $0.78. I bought back the 184 put sold at $1.11 for $0.46. Altogether I made $0.63 cents less fees on these rolls.<\/p>\n

Finally, I established the new short position by selling the AUG 21 GLD put at 388 for $1.58. <\/p>\n

To date I have brought in $194 in realized profits, and have a positive cash flow of $185 after all fees. My original hedge, the 182 AUG 27 put, has lost $187 of value. If I were to close all positions immediately, I would have a gain of around $5.00 after slippage and commissions (194-187 - 2) on an original outlay of $89.00 ($269 - $160). That's a 5% return in 3 days, not too shabby.<\/p>\n

But of course I will not sell yet. I still have another 3 days of time to milk my rented cow...<\/p>\n","protected":false},"excerpt":{"rendered":"

As the thumbnail image shows, yesterday afternoon GLD rose from 183 to 186. I had prophylactically sold a 186\/185 bear put spread if GLD rose to 186, which brought in $0.50 of revenue per share. Now I was holding a -1 +1 -1 “ladder” spread. I did not have time to deal with this until […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[],"class_list":["post-1748","post","type-post","status-publish","format-standard","hentry","category-trades"],"_links":{"self":[{"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/posts\/1748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/comments?post=1748"}],"version-history":[{"count":3,"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/posts\/1748\/revisions"}],"predecessor-version":[{"id":1753,"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/posts\/1748\/revisions\/1753"}],"wp:attachment":[{"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/media?parent=1748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/categories?post=1748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradejolt.com\/wordpress\/wp-json\/wp\/v2\/tags?post=1748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}