More volatility seen in gold miners
Chris McKhann | firstname.lastname@example.org
optionMONSTER's Heat Seeker system detected the purchase of 25,000 March 30 GDX calls for the ask price of $0.30. This is clearly a new position, as the volume is 5 times higher than the previous open interest in the strike.
Seconds later, the largest block of GDX stock traded in a single print of 350,000 shares that was sold for $23.3571. Combined with the calls, this creates a position that is exactly delta-neutral, meaning that the trader is looking for a big move up or down and/or for volatility to be greater than that implied by the options. (See our Education section)
The GDX is down 1.1 percent to $23.43. The $23 level has been support going back to the stock's 52-week low of $22.21 set in June. The exchange-traded fund did get above $31 in late August.