Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 30, 2013  Wed 9:59 AM CT

GDX: SEE CHART GET CHAIN FIND STRATEGIES
Topping today's option volume in the Market Vectors Gold Miners Fund is a bullish combination that may be a protective trade.

More than 44,000 GDX options have changed hands, already topping its daily average. Much of that volume is in one combination trade.

optionMONSTER systems show that a trader sold 9,000 June 39 puts for the bid price of $1.17 and, seconds later, bought 9,000 June 43.50 calls for $2.59. The volume at each strike was more than six times higher than the previous open interest, indicating new positions.

The combination is bullish and may just be a trader looking for the GDX to regain levels of just a week ago. But this could also be a collar on a short position, given the recent action in the shares. (See our Education section)

The GDX is up 1.4 percent today to $42.83. The exchange-traded fund was up at $46 last week but has been trending lower from $55 in the last four months.
Share this article with your friends


Related Stories

GDX

Midday index, ETF option volumes

July 11, 2014

Total option volume is a bit light at 5 million so far today, with mixed action in the primary indexes and ETFs, according to optionMONSTER data systems.

Premium Services

Free Webinars

Education & Strategy

Why traders hedge with sector ETFs

Many people who are not familiar with options think that they increase risk, but their first and primary purpose is...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER