Sometimes the biggest wins come from patience and letting the market do the heavy lifting. Our recent $GLD swing trade perfectly demonstrated how identifying major breakouts early and maintaining disciplined position management can generate exceptional returns over several weeks. This trade on the 315 calls expiring October 17th showcased the power of swing trading during strong trending moves.
Ongoing trade
The $GLD swing trade is still open, as of September 9, 2025. There have been trims, but this post will be updated when the trade is fully closed.
What is a Swing Trade?
Before diving into the specifics, let’s clarify what distinguishes a swing trade from our typical day trades. While day trades capitalize on short-term momentum and are typically closed within hours, swing trades are designed to capture larger price movements over days, weeks, or even months.
Swing trading requires a different mindset and approach:
- Longer time horizon: Positions are held for multiple days to weeks
- Larger price targets: We’re aiming for substantial moves, not quick scalps
- Different risk management: Wider stops to account for normal volatility
- Trend following: We’re riding momentum rather than trading reversals
- Less frequent monitoring: Positions don’t require constant attention like day trades
The key advantage of swing trading is the potential for outsized returns when you catch a major trend early. However, it requires patience and the discipline to let winners run while managing risk over longer timeframes.
The Setup
At 11:03 AM on Monday, August 26th, I alerted the TW Elite community:
“Watching $GLD 10/17 315C @everyone”
Just three minutes later at 11:06 AM, we executed our entry:
“$GLD BTO 17OCT25 315C at $6.00
Starter. Swing.”
The timing was strategic with options expiring nearly two months out, giving us plenty of time for the trade to develop. Gold was showing signs of breaking out from consolidation, and the technical setup suggested a major move could be brewing.
The Trade Plan
Immediately after entry, I established our parameters for this swing position:
Stop: $306.43
Add: $308.47
Targets: $314.96, $317.93+
This structure gave us room to breathe while defining clear levels for adding to the position and taking profits. The wide stop reflected the longer-term nature of the trade, accounting for normal volatility in gold prices.
Riding the Trend
The beauty of this swing trade was watching it develop over multiple weeks:
August 28th, 9:37 AM – First Trim at $7.20
After just two days, we secured our first profits with a 20% gain, trimming a portion while letting the majority ride.
August 29th, 10:37 AM – Second Trim at $9.00
Another strong day brought us to 50% gains in just three trading days, prompting another strategic trim.
September 2nd, 10:44 AM – Third Trim at $13.29
Labor Day week delivered another leg higher, with this trim capturing over 121% returns.
September 3rd, 12:59 PM – Fourth Trim at $18.00
The momentum continued, with this exit representing a massive 200% gain from our original entry.
Reading the Market Context
On September 3rd at 1:05 PM, I shared important context with the community:
“$GLD Gorgeous move last few days but possibly running a little hot (see RSI). Trimming into this strength and will look to stay in until I get trailed out. If/when we see a pullback will be look to roll up to higher strikes.”
This update highlighted the disciplined approach to swing trading – recognizing when momentum might be getting extended while maintaining exposure to further upside.
The technical picture became even clearer on September 6th when I posted on Twitter:
“$GLD Weekly all time high breakout.”
This confirmed what our swing trade had been positioned for – a major breakout to new highs in gold.
Trade Results
This swing trade generated exceptional returns across all exit points:
Entry: $6.00 per contract
- Exit 1: $7.20 (+20.0%)
- Exit 2: $9.00 (+50.0%)
- Exit 3: $13.29 (+121.5%)
- Exit 4: $18.00 (+200.0%)
The scaled approach allowed us to capture profits systematically while participating in the full extent of the move. Our highest exit represented a 200% gain over just eight trading days.
Why This Swing Trade Worked
Major breakout setup: Gold was positioned for a significant technical breakout to new highs
Longer timeframe: The October expiration gave us time for the move to fully develop
Systematic scaling: Regular profit-taking locked in gains while maintaining upside exposure
Trend recognition: Identifying the start of a major trending move rather than a short-term bounce
Disciplined management: Trimming into strength while staying positioned for continuation
Technical confirmation: The weekly all-time high breakout validated our thesis
Key Takeaways
This $GLD swing trade demonstrates the power of patience and trend following in options trading. Unlike day trades that require quick decisions and rapid execution, swing trades reward those who can identify major moves early and have the discipline to let them develop.
The key was recognizing that gold was setting up for a significant breakout and positioning with enough time for the move to unfold. By scaling out systematically, we captured substantial profits while maintaining exposure to the full trend.
Remember: The biggest winners often come from the trades you hold, not the ones you flip. Having the patience to let major trends develop while managing risk through systematic scaling – that’s what separates swing trading success from the constant churn of over-trading.
The trend is your friend, and sometimes the best thing you can do is get positioned and let the market do the work.
On to the next trend!