In a recent update to my Option position in GLD (Gold) (https://itawealth.com/gld-options-inflation-play-08-july-2020-update/ review_id=36776&preview_nonce=8e7f8d1f64&_thumbnail_id=36780&preview=true) I described how I have adjusted the position so as to free up ~$2,800 that can be used to add to the position without increasing total risk to more than $3,500. This post shows the new position that I have added that uses the available $2,800.
Again, the position has the same “pattern” – it is a simple (long-term) diagonal spread. The main difference between this position and the existing position is that I have bought the $170 strike Call expiring 3 months further out in time (in June 2021). As the first step in covering premium costs paid for the long Calls I have sold $200 strike Calls expiring in 2 weeks (August 21).