Hi all,
I currently have one GLD 280 C for 15Jan2027 expiry. My cost basis is $29.16. When I bought this my expectation was Gold will reach $5k. It reached even before my target date and I'm Deep in the money. Since it is very much deep, now the spread for call and ask is more. I am planning to hold till coming August considering geopolitical changes and intrest rate cut. I dont want to exercise this cal on expiry, because selling GLD will attract 28% tax since gold is collectible item.
1. Is it good to hold till August and can I able to sell at that time if gold spot price is up above $5K ?
2. Since I do have only one call option I can't get my cost basis until I sell this option ?
I do small trades and I never been to this scenario with 500% profit with long expiry. Need guidance.