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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.
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Education & Strategy

Gamma

As we continue to discuss the Greeks, we come to the first of the strike based Greeks called Gamma. Gamma is known as the second derivative, while delta is the first.

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