OptionsHouse

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


Invest Like a Monster - San Diego: June 26-27

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Short Gamma

Last week, we talked about long Gamma. We said that long gamma is acquired by purchasing options and when you...

View more education articles »