Market News

August 29, 2013  Thu 2:14 AM CT

A trader is counting on a floor in the Gold Miners Bull 3x Shares exchange-traded fund.

optionMONSTER systems show that 2,400 September 45 puts were sold for $0.70. There was no open interest at this out-of-the-money strike, so it is a new position.

This put seller has an initial bullish bias but is really just looking for the NUGT to remain above $45 through expiration in mid-September. (See our Education section)

The NUGT, which is designed to deliver triple the performance of the NYSE Arca Gold Miners Index, fell 8 percent to $77.73 yesterday. It was above $105 on Tuesday but bounced off support at $50 at the beginning of the month. The fund just underwent a 10-to-1 reverse split to keep it from dipping too low.
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