Break-even: I breakeven on this trade if GLD closes at $158.49 or $171.51 by June 15, 2012.
Unprofitable: I lose money on this trade if GLD closes under $158.49 or above $171.51 by June 15, 2012. I like this trade, because I am risking $349 per 1 lot to make $1000 and I make money on this trade if stock stays flat to $170. I am catching a falling knife with this one, but I think this is good risk vs reward and I always like to play GLD to the upside.
UPDATE 5.7.2012 With GLD rallying a little bit this trade is currently worth $3.80 and already good for a 8% winner in 3 days. I will leave this trade on, because I think there is more upside in Gold
UPDATE 5.8.2012 With GLD getting crushed by more than $3 today, this Spread is decreasing in value as well. This Spread is now currently worth $2.50, but I will leave it on as I remain bullish Gold.
UPDATE 5.9.2012 With GLD down again today, this Spread is currently worth $2, but I will leave it on as I think Gold could get a bounce.
UPDATE 5.10.2012 With GLD getting a small bounce today, this Spread is worth $2.15, but once again I will leave it on for more potential profits.
UPDATE 5.11.2012 GLD is selling off and this Spread is worth $1.91, but I still think Gold will work higher this summer.
UPDATE 5.14.2012 With GLD selling off once again this Spread is now worth $1.33. I will not add to my position yet, but getting close.
UPDATE 5.16.2012 I still remain bullish in Gold, but risk vs reward is defined so I will leave this trade on. It is one of my smaller positions and actually added to my position today at $.93. Risking $93 per 1 lot to make $1000 is a great risk vs reward play.
UPDATE 5.22.2012 GLD and Gold got a nice POP and the Spread is now trading $1.80, so I am actually up money on this trade, because I added more. I took this trade off yesterday as I was frustrated with any LONG positions.
Read more about described by www.keeneonthemarket.com