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


Related Stories

GDX

Is it time for gold miners to rebound?

September 29, 2014

Bullish activity in the Market Vectors Gold Miners exchange-traded fund is probably tied to hopes of a bounce in gold and silver after European Central Bank's policy announcement Thursday morning.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER