GLD Iron Condor – 12% ROI in 17 days

12/21/21 Update – Closing this GLD Iron Condor for a profit. Just 2% shy of my 50% profit target, we closed for a $52 debit, or a $48 profit per contract. 12% ROI.

  • Bought to Close 1 GLD 01/21/22 Put 156.00 @ 0.29
  • Bought to Close 1 GLD 01/21/22 Call 174.00 @ 0.61
  • Sold to Close 1 GLD 01/21/22 Put 151.00 @ 0.15
  • Sold to Close 1 GLD 01/21/22 Call 179.00 @ 0.23
What’s the GLD Trade?
With GLD at $165, and the IVR over 50%, consider selling a 151/156/174/179 Iron Condor. My plan is to close once IVR decreases and the trade is worth $50. At that point, I’ll buy to close for 50% of what I collected.
– Bought 1 GLD 01/21/22 Put 151.00 @ 0.54
– Bought 1 GLD 01/21/22 Call 179.00 @ 0.52 
– Sold 1 GLD 01/21/22 Put 156.00 @ 1.03 
– Sold 1 GLD 01/21/22 Call 174.00 @ 1.03 
Total Premium Collected: 100$
Total Risk: 400$
Risk Reward: Risk $400 to make $100
Rationale: This is a defined risk trade. You can make up to $100 by 1/21 if GLD is trading between 156 – 174 at expiration.
Probability of making 50% or 50$ : 81%
Theta Decay:  As of 12/2, this trade will pay you $1.52 in daily theta decay until expiration.
Assumption: Neutral
Timeframe: ~1-6 weeks

– Jerry

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