Oct 2016 Swing #1 – GC

Day 1 – 27 October 2016

  1. This was a directional trade. GC has been trading at support for 5 days. One of my indicator (wave) has shown upward move so I decided to take the risk and enter LONG.
  2. However to reduce risk, I sold a PUT for positive theta, 90% OTM probability, and at least 90 days out.

gc

Day 5 – 1 November 2016

  1. Another indicator (squeeze) is finally also showing sign of upward move.
  2. It has reached my target return but since the indicators are still showing upward strength, I will keep trade open for now.

Day 6 – 2 November 2016

  1. GC is trading near the resistance around 1306 and there will be FOMC statement at 2pm EST later.
  2. Since it has already hit my target profit, I decided to close this trade and book the profit.

Trade Summary

  1. Winning trade, nett profit $284.52.