Learn the trade here. Make it on tradeMONSTER

Options Trading News

April 23, 2013  Tue 11:11 AM CT

GDX: SEE CHART GET CHAIN FIND STRATEGIES
Call selling leads today's option activity in the Market Vectors Gold Miners Fund as it heads lower once again.

optionMONSTER systems show that a trader sold 5,000 January 37 calls for the bid price of $1.12. This is clearly a new position, as the volume was more than twice the strike's open interest before the session began.  

The calls appear to have been sold against stock, as a block of 120,000 GDX shares traded shortly after for $28.225. The combination of stock and options creates a strategy that is looking for lower volatility and/or range-bound trading.

The GDX is down 1.43 percent to $28.56. The exchange-traded fund hit a low of $27.27 a week ago as it collapsed with the price of gold. Shares were at a high above $55 last September but have been trending lower since.
Share this article with your friends


Related Stories

GDX

Sharp move seen in gold miners

March 20, 2014

A large and very short-term trade is looking for a sharp move up or down in the Market Vectors Gold Miners Fund today, has fallen from highs reached last Friday.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER