Trading Edge 2020 Portfolio -Trade #2- GLD - Golden Opportunity

Position:

- Long dated call options
- Jan 15th 2021 expiry
- $137 Strike
- 0.71 Delta (ITM)
- Cost = $12.10/ contract
- Buy 1x contract

Profit Target/ Exit:

- $150 initial profit target
- Two closes below $136 is exit signal (this would be around a 50-60% stop)

Rationale:

- GLD has broken out of the descending channel (period of consolidation)
- Bullishly stacked moving averages
- GLD can also act as a potenital hedge against other market long positions (MJ for example) should we experience a market pullback in Q1
- Bullish MACD cross and moving averages cross
- Longer dated options give more flexibility in allowing the trade to develop, also gives us the ability to roll the contract to lock in profit and stay in the trade
- GLD has had quite a nice move up recently and is at the 3 ATR on the daily, so a slight easing is possible, but any ease should not take us below our stop, if this breakout has any legs



- Trading Edge

Trade closed manually:

Exit position: Due to weakening technicals (MACD, RSI, and others)

Sell $137 Strike Call = $14.80/ contract (mid offer)

22.31% Profit

I am still bullish for GLD throughout 2020, however i am also happy to revisit GLD at a higher price, if the technical outlook is better.