On "Options Action," we do our best to call out our traders' losing bets. Now it's time to call out two of our own mistakes. On Friday's show, we provided the wrong expiration month for two different trades.
First: On Friday, "Options Action" contributor Mike Khouw presented a bearish bet on the SPDR Gold Trust. He suggested buying the October 120/117 put spread for $1.50. The graphics said that the trade was for September expiry, but the actually expiration month for Mike's suggested trade was October.
With prices quotes given when the gold ETF (ticker symbol: GLD) was trading at $118.50, here's Khouw's trade on the Gold ETF, and how it makes money:
Mike's (GLD) Trade:
Buy October 120-Strike Put for $7.40
Sell October 117-Strike Put for $5.90
How Mike's Trade Makes Money:
Losses Above $118.50
Profits from $118.50 Down to $117.00
Profits Capped at $117.00