Friday, 2 May 2014

GLD Structure Update #1 (Legging Out of Put Structure)

GLD is trading up 1.32% after a couple of small down moves. A quick update on the position we structured a few days ago.

If you sold the 115 Put in June to finance

a) forward ratio for 6 cents
b) or butterfly for 11 cents.

you can now cover the puts for sufficient profit in order to fully cover the debit side of the structure.

if you sold on the 30th, you would have received 41-45 cents.

since the current ask is 27 cents, you have a 14-15 cent profit and can fully cover butterfly debit.

this will eliminate all downside risk, leaving you with a free forward ratio or butterfly into June.

I'm putting in an order to cover half of my naked put positions at 25 cents.

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