GLD – Bull Put spread

Click here for reference PL graph, price chart.
Possible Gartley as well, although might not be very well formed (AB=CD does not confluence with 78.6% FR of initial downward impulse wave).

Bullish stance, played via a bull put spread.
Short 10 Dec 11 160 puts
Long 10 Dec 11 159 puts
Credit = $320
Max Loss = $680
BE @ 159.95
Looking for around 20% of risk.
Note: Adjust # of contract based on risk tolerance

The trade would gain with an increase in price of GLD (+ve delta), with the passing of time (+ve Theta) & with a decrease in IV (-ve Vega).
This entry was posted in Bull Put Spread, Commodities, Gartley, Gold, Harmonic Pattern, Options. Bookmark the permalink.

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