As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Trade Alert - (GLD) - Expiration
Expiration of the SPDR Gold Trust Shares August, 2013 $106-$110 call spread
Closing Trade
8-16-2013
expiration date: 8-16-2013
Portfolio weighting: 10%
Number of Contracts = 29 contracts.
Our position in the SPDR Gold Trust Shares August, 2013 $106-$110 bull call spread expired on Friday at its maximum potential value of $4.00. The (GLD) ETF closed at 132.58, or a healthy $22.58 in the money. This works out to $225.80 in terms of the underlying gold spot market.
Sure, we would have made a lot more money being outright long the $106 calls. But as is always the case with market bottoms, the world looked like it was ending for gold then, and it was tough to be so aggressive. Better to wimp out and settle for a single than swing for the fences trying for a home run.
Here is the final profit calculation for the position. You need take no action. Your broker should clear the position out of your account, free up the margin, and credit you with the cash by Monday. If only they all worked out so well! This means we have made money trading both the long and short side in the barbarous relic this year, not something everyone can do.
Expired long 29 August, 2013 (GLD) $106 calls at??$26.58
Expired Short 29 August, 2013 (GLD) $110 calls at.?.$22.58
Net Cost:????????????....??..??......$4.00
Profit: $4.00 - $3.35 = $0.65
($0.65 X 100 X 29) = $1.885 ? 1.86% for the notional $100,000 model portfolio.