Posted on December 4, 2020
We have half a trade coming ripe today – our November 19th initiative that recommended you sell the GLD December 4th 175.50 straddle for $4.09 and buy the WPM December 18th 42 straddle for $3.97. Total credit on the bet was $0.12.
With the GLD straddle expiring, we have the 175.50 PUT likely closing in-the-money.
Which means we have to buy it back.
Gold futures are up as we write, so you’ll do better than us on the repurchase; but we’re booking it with last night’s closing numbers.
That is, we’re buying the 175.50 PUT for $2.83 (and leaving the CALL to wither), bringing our initial credit on the trade into a debit of exactly $2.71.
On the other side, the WPM options still have two weeks remaining and currently possess a combined value of $2.72.
You could close the trade today for a perfectly flat outcome, or let it go and bet on a strong move for gold and WPM in the weeks to come.
For our part, we’re holding.
One important consideration:
Should GLD approach the straddle strike of 175.50, you’ll do well to close out both GLD options. And that would be the ideal outcome.
Best to wait until the dust settles after the open before taking any action.
And with that, fellow Jews and Noahides, we move into the Holy Sabbath in our Holy Land.
The New York open will be outta sight from this end, so you’re on your own.
And if you’re wondering about that ‘68 Roadrunner that features so prominently in the photos above, our thanks to dear subscriber Mark Saylor for sending them along.
Brings us back to a more innocent day.
May the G-d of Israel restore what was lost.
Alan B. Harvard