When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.
Trade Alert - (GLD) – EXPIRATION
EXPIRATION of the SPDR Gold Shares (GLD) April 2024 $194-$197 vertical BULL CALL debit spread at $3.00
Closing Trade
4-19-2024
expiration date: April 19, 2024
Portfolio weighting: 10%
Number of Contracts = 40 contracts
With this trade, we really nailed the ballistic melt-up in Gold this month. This position is expiring an eye-popping 15.98% in the money.
Just to be clear, this position does not expire until after the close on Friday, April 19.
As a result, you get to take home $1,600 or 16.00% in 17 trading days. Well done and on to the next trade.
You don’t have to do anything with this expiration.
Your broker will automatically use your long position to cover your short position, canceling out the total holdings.
The entire profit will be credited to your account on Monday morning, April 22 and the margin freed up.
Some firms charge you a modest $10 or $15 fee for performing this service.
The flight of money right now is from small, undercapitalized, and questionable to large, overcapitalized, and rock solid.
The bull case for gold is simple. Falling interest rates mean less yield competition for gold, which yields nothing. China and Russia have been stockpiling gold for years to avoid international financial sanctions. A global gold shortage is developing with new mine costs rising. Gold also offers protection against rising US debt, which is expected to hit $35 trillion shortly.
SPDR Gold Shares (GLD) is a play on physical gold. They are shares in a corporation that owns 400-ounce gold bullion bars held by a London trust. It is far safer owning gold through the (GLD) than through owning your physical gold bars via a third-party custodian. If the custodian goes under, which is frequent, your gold is gone. With (GLD) your credit risk is with State Street, a highly-rated firm with a strong balance sheet.
For details about SPDR Gold Shares (GLD), please visit their website at https://www.spdrgoldshares.com.
This was a bet that (GLD) would not fall below $197.00 by the April 19 option expiration tomorrow.
Here are the specific trades you need to close out this position:
EXPIRATION OF 40 April 2024 (GLD) $194 calls at………….……….$26.63
EXPIRATION OF Sell short 40 April 2024 (GLD) $197 calls at…….$23.63
Net Proceeds:………………………….………..………....….................….....$3.00
Profit: $3.00 - $2.60 = $0.40
(40 X 100 X $0.40) = $1,600 or 16.00% in 17 trading days.
