OptionsHouse

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

Bulls follow momentum in gold miners

February 4, 2016

The Market Vectors Gold Miners Fund has been rebounding in recent months, and a large trade is looking for the uptrend to continue.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »