To The Moon

Selling Puts, Reducing Cost, and Day Trading the Range

Introduction – Why I Trade Gold Differently

Gold has always played a special role in financial markets. It is not a fast-growing tech stock, nor is it a speculative meme asset. Gold moves with macro forces—interest rates, inflation expectations, currency strength, and geopolitical risk. Because of that, it tends to move in ranges, with bursts of volatility rather than endless trends.

That characteristic makes gold an excellent candidate for options-assisted trading, especially when using an ETF like IAU (iShares Gold Trust).

In this article, I’ll explain in detail how I:

• Sold a cash-secured put on IAU at a $93.50 strike

• Collected $0.58 premium

• Reduced my true cost price to $92.92

• Used a day-trading approach when price moved up to $94.87

• Captured additional profit by selling high and buying back lower

• Continue to queue another sell at $94.65

• Treat this as a dedicated gold trading portfolio using spare cash

This is not about gambling. It’s about stacking small edges repeatedly.

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Why I Chose IAU Instead of Physical Gold or Futures

Before getting into the trade itself, it’s important to explain why I use IAU.

IAU is:

• Backed by physical gold

• Highly liquid

• Low expense ratio

• Tight bid-ask spread

• Easy to trade in normal brokerage accounts

Compared to gold futures:

• No leverage risk

• No forced liquidation

• No complex margin calls

Compared to physical gold:

• No storage costs

• No liquidity issues

• Instant execution

For trading and short-term positioning, IAU is simply efficient.

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Step 1 – Selling the Put Option at $93.50

Instead of buying IAU outright, I started by selling a cash-secured put.

Trade details

• Strike price: $93.50

• Premium received: $0.58

• Contract size: 100 shares

• Cash set aside: $9,350

This means:

• If IAU stays above $93.50 → I keep the premium

• If IAU falls below $93.50 → I get assigned shares at $93.50

Either outcome is acceptable to me.

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Step 2 – Calculating the True Cost Price

Many traders make the mistake of ignoring premium when calculating cost. That’s a critical error.

Correct calculation:

$93.50 − $0.58 = $92.92

So my real cost is $92.92, not $93.50.

This matters because:

• I can sell sooner

• I have downside buffer

• I’m already profitable earlier than most buyers

This is the hidden advantage of selling puts.

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Why I Was Comfortable Being Assigned

I didn’t sell the put hoping to avoid assignment. I sold it expecting assignment.

Reasons:

• Gold was showing strength

• IAU was holding above support

• Macro conditions favored gold stability

• I was fine holding gold temporarily

Most importantly:

👉 This was spare cash I can afford to lose.

That single sentence changes everything psychologically.

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Step 3 – Assignment and Ownership of IAU

Once assigned:

• I owned 100 shares of IAU

• Cost basis: $92.92

• No stress

• No rush

At this point, many investors would just hold and wait.

But I saw an opportunity to extract more value.

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Step 4 – Gold Moves Up to $94.87

Gold strengthened, and IAU moved up to $94.87.

Now let’s pause and think:

• Cost price: $92.92

• Market price: $94.87

• Unrealised gain: $1.95 per share

That’s already a solid win.

But instead of being greedy, I chose to:

👉 Sell into strength.

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Step 5 – Selling at $94.87 and Buying Back at $94.40

This is where the day-trade mindset comes in.

The trade:

• Sold at $94.87

• Bought back at $94.40

• Difference: $0.47

On 100 shares:

• $47 profit in a short time window

This was not a prediction—it was execution.

Gold ETFs often pull back slightly after a quick push. I didn’t need a crash, just a small retracement.

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Combining Option Premium + Day Trade Profit

Let’s stack the numbers:

1. Put premium earned

• $0.58 × 100 = $58

2. Day trade profit

• $0.47 × 100 = $47

Total so far

👉 $105 from one cycle

And this doesn’t even include the possibility of repeating the process again.

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Step 6 – Queueing Another Sell at $94.65

After buying back at $94.40, I placed another sell order at $94.65.

Why $94.65?

• Slightly below recent high

• Realistic resistance level

• Improves fill probability

• Respects gold’s range behavior

I don’t need perfection.

I just need repeatability.

If it hits:

• Another small profit

If it doesn’t:

• I hold gold with a low cost basis

Either way, I’m fine.

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Why I Treat This as a Dedicated Gold Trading Portfolio

This is not my main investment capital.

This is:

• Spare cash

• Capital I can emotionally detach from

• A focused gold-only strategy

That separation is powerful because:

• No panic selling

• No revenge trading

• No over-leverage

I know exactly what this account is for:

👉 Income + tactical trades on gold

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The Psychological Edge of “Money I Can Lose”

Most traders fail not because of bad strategies, but because of emotional pressure.

By defining this as spare cash:

• Losses don’t hurt

• Decisions stay rational

• I follow the plan

Ironically, when you stop fearing losses, you often make better profits.

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Why This Strategy Works for Gold Specifically

Gold:

• Moves in ranges

• Reacts to macro news

• Rarely goes vertical without pullbacks

That makes it ideal for:

• Selling puts

• Reducing cost basis

• Selling into strength

• Buying back on dips

This would be far harder with a high-growth tech stock.

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Risk Management – What Could Go Wrong

No strategy is risk-free.

Risks include:

• Sharp gold sell-off

• Strong USD rally

• Sudden interest rate shock

But even then:

• My cost is $92.92

• I can sell covered calls

• I can hold long-term

• Gold recovers over time historically

I am not forced into bad decisions.

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Why I Prefer Many Small Wins Over One Big Bet

This strategy isn’t exciting.

It’s boring.

And boring is good.

Small wins:

• Compound over time

• Reduce stress

• Build confidence

• Protect capital

I don’t need gold to moon.

I just need it to move.

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Final Thoughts – This Is a Business, Not a Gamble

This IAU trade shows how:

• Options reduce cost

• Discipline beats prediction

• Cash management matters

• Psychology is everything

Selling the put gave me an edge.

Day trading the range multiplied it.

Using spare cash protected my mindset.

This is how I trade gold—not with hope, but with structure

@TigerCoinCenter @Tiger_Contra @MillionaireTiger @TigerCoinCenter @TigerStars @Daily_Discussion