OptionsHouse

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

Bulls digging for paydirt in gold miners

May 11, 2016

The Market Vectors Gold Miners Fund is up 35 percent in the last three months, and traders are betting that the uptrend will continue.

OptionsHouse

Premium Services

Education & Strategy

The Optimal Strategy

I was talking to a friend of mine the other day. He is an experienced options trader with floor experience and we were discussing my recent QQQ trade.

View more education articles »