Hello Investors,
Next week is Martin Luther King Jr Day, markets are closed and we will be traveling. So, there is no live class next Monday.
Today we discussed our overall outlook on stocks, bonds, gold and other markets in 2024. As per that discussion, we re-entered into a bullish position in GLD having taken profits on our prior trade a few weeks ago. We also took profits on our Zillow (Z) 1×2 put spread. And rolled a covered call in Z for a loss. The details are shown below.
Entered into a new trade in GLD as follows:
Buy to open: GLD April 19th (monthly) 190.00 strike call (ratio of 1)
Sell to open: GLD April 19th (monthly) 210.00 strike call (ratio of 2)
Buy to open: GLD April 19th (monthly) 230.00 strike call (ratio of 1)
Debit: 3.84
Max risk = 3.84 or $384.00 per spread
Max reward = 16.16 or $1,616.00 per spread
Took profits on our Zillow (Z) 1×2 put spread as follows:
Sell to close: Z Jan 19th (monthly) 60.00 strike put (ratio of 1)
Buy to close: Z Jan 19th (monthly) 55.00 strike put (ratio of 2)
Credit: 2.05
This locked in a profit of +1.45 or +$145.00 overall
Rolled up only 1 of our 2 Jan 50 strike covered call contracts in Zillow (Z) as follows:
Buy to close: Z Jan 19th (monthly) 50.00 strike call (ratio of 1)
Sell to open: Z Jan 19th (monthly) 55.00 strike call (ratio of 1)
Debit: 3.67
Have a great week!