Learn the trade here. Make it on tradeMONSTER

Options Trading News

March 14, 2014  Fri 2:45 AM CT

GDX: SEE CHART GET CHAIN FIND STRATEGIES
A large call spread in the Market Vectors Gold Miners Fund appears to be bearish.

optionMONSTER systems show that a trader sold 5,000 April 26 calls for the bid price of $1.93 and bought 5,000 April 29 calls on the ask for $0.57. The volume is above previous open interest in each strike, so this is a new credit spread.

The trader collects $1.36, which will be kept as profit if the GDX is below $26 upon expiration in mid-April. The maximum amount at risk is $1.64, which would be lost if the stock is above $29. (See our Education section)

The GDX finished yesterday at $27.63, a penny off its session high and its highest close since mid-September. The exchange-traded fund was at a five-year low of $20.24 at the end of 2013.
Share this article with your friends


Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

Make your rules, and stick by them!

New traders often act on the recommendations of others or on gut feel. But that is a quick way to...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER