Rather than adding updates at the bottom of my original post (https://itawealth.com/is-inflation-risk-likely-to-increase-a-low-cost-option-strategy-for-possible-participation/) I will start a new thread to avoid having to scroll down too much.
The May 164 Calls that had been sold on this position expired on Friday. I might have watched until the close and let the options expire worthless but, with GLD trading above $164 mid-afternoon, I decided to buy back the Call (for 0.36 – $36) and to roll out and sell the 170 strike Call expiring in June (~ a month from now). I was able to do this for a net credit of 2.10 ($210) and so reduce my maximum position risk to $2,384:
With GLD closing just under 164 at 163.93 a 100 share position in GLD would now be showing an unrecognized profit of $1,108 on an investment of $15,285 – or a Return on Investment (ROI) of 7.25%.
My original Option position (a diagonal spread) is presently showing an unrecognized profit of $1,019 or 27.4% ROI on the original purchase price of $3,718 for the long March 2021 Call and a 42.7% Return on Risk (ROR).
If I include the side-bet that I made by selling the May 165/167 Call spread to compensate for the fact that I missed an earlier roll of the original April Call that was sold, this adds $215 to my profit as that spread expired worthless on Friday enabling me to keep the premium that I had received. In combination with my original position this results in $1,234 profit on positions with a current maximum risk of $2,384 – or 51.76% ROR.
The current adjusted position now looks like this:
through to the June expiry of the 170 strike Calls.