Options Trading News

April 23, 2013  Tue 11:11 AM CT

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


Put sellers see floor in gold miners

November 5, 2015

The Market Vectors Gold Miners Fund fell last month with renewed speculation that the Federal Reserve will raise interest rates in December.


Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »