GLD Short Call — Sep 18, 2026
Trade Setup
Current Stock Price
$371.54
Entry Price
$254.50
Target Price
$127.25
Stop Loss
$509.00
Expiration
Sep 18, 2026
Suggested Contracts
1
Strike Details
Sell 405C
Risk / Reward
Max Loss
$81000.00
Max Profit
$254.50
Analysis
GLD (SPDR Gold Shares) presents a short call opportunity with moderately elevated implied volatility. IV Rank 26. IV 2492.0% trades 383.0pp above 30-day HV (2109.0%). This setup favors net premium sellers.
Sell the $405 call for $2.54 credit. Naked single-leg exposure; collect premium from time decay if GLD stays below the strike. Underlying ~$371.54, 49 DTE. Max profit $255 per contract, max loss $81000, 0.3% return on risk, 84% POP. Breakeven at $407.55.
Management: take profit at ~50% of max profit ($127). Cut at 2x credit ($509 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: GLD @ ~$371.54 Expiration: Sep 18, 2026 (49 DTE) Net credit (entry): ~$254.50 per spread Legs:
- Sell GLD Sep 18, 2026 $405 Call (delta 0.16, mid $2.54)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~8.3% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($127). Cut loss if position reaches 2x credit received ($509 loss). Roll if tested with > 14 DTE remaining.