Short term
Trade view / 01 August 2016 at 2:26 GMT

UPDATE: Bull call spread on gold

Product Manager, Options Trader, Educator
Instrument: GCV6
Price target:
Market price:

As described in the original post, this is a 10 point-wide spread, $1340-$1350/oz.

The maximum profit is limited to the spread-net debit or (10-5.70) 4.30 per contract.

With gold rallying above the short strike of $1350/oz, we now need to let the clock run and benefit from the time decay.

There's 23 days to go before expiration and we just need the underlying future to remian above 1350. As a reminder, we want to capture at least 80% of the maximum gain or $3.44 (4.70 x 80%) per contract.

— Edited by Adam Courtenay

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Feders Feders
Hello!, I don't understand, why do you say that max profit is the debit?. The debit is not the max loss?
Georgio Stoev Georgio Stoev
Max profit= spread - debit or 10-5.70


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