This morning with the DOW down ~35 and GLD trading at ~173 I entered into the following transaction in a Roth IRA account:
Bought 2 GLD Nov 19 2011 165 Calls @8.2 -1651.53
Sold 2 GLD Dec 17 2001 166 Calls @ 9.5 +1888.44
This transaction brought in a net credit of $236.91 while allowing us to participate in another dollar of appreciation. This is the have your cake and eat it scenario which the volatility in precious metals has allowed us to enjoy. Due to the multiple calls sold against this position our cost basis is down to $146.73.
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