You could do a 165 - 175 call spread. Buy the 165 and sell
the 175, 2 months out. This will limit your profit to about
$7.50 (theoretically $10 but it never happens) per contract and
your cost should be less than $2. I've found these spreads to
cost a lot less than just buying the $165 call for example.
Spend less so you could lose less but upside is capped as
well.
You could do a 165
looking at GLD calls, but options are new to me. ...
Posted by fredsaid on 3rd of Mar 2021 at 09:22 am
You could do a 165 - 175 call spread. Buy the 165 and sell the 175, 2 months out. This will limit your profit to about $7.50 (theoretically $10 but it never happens) per contract and your cost should be less than $2. I've found these spreads to cost a lot less than just buying the $165 call for example. Spend less so you could lose less but upside is capped as well.
OK thanks for explaining that.
Posted by retirefire on 3rd of Mar 2021 at 09:31 am
OK thanks for explaining that. Ive been going out 30 - 60 and no spreads yet. Kind of mimic how the SPY system trades I guess concerning strikes.