"Options Action" Correction: Calling Out Ourselves

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

Second: In our (pretty epic) look back at Khouw's bullish Google trade from May 24th, we said the trade was for August expiry. However, the trade was actually for July expiry. Here are the specifics of the trade that we looked back on:

Mike's (GOOG) Trade:

Buy August 900-Strike Call for $27.00

Sell August 940-Strike Call for $13.50

How Mike's Trade Makes Money:

Profits Capped at $940

Profits from $940 Down to $913.50

Losses Below $913.50

Our apologies for the errors, and a huge thank you to our loyal social media following for pointing them out. You guys keep us honest, and we appreciate that. Please use Twitter (@CNBCOptions) and Facebook (Facebook.com/OptionsAction) to continue to send questions and comments our way.

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Host Bio

  • Melissa Lee

    Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

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