OptionsHouse

Options Trading News

December 24, 2013  Tue 11:37 AM CT

GDX: SEE CHART GET CHAIN FIND STRATEGIES
A big call spread is looking for a rebound off six-year lows for the Market Vectors Gold Miners Fund.

optionMONSTER systems show that a trader bought 6,000 February 22 calls for $0.66 and sold the same number of February 25 calls for $0.16, below the listed bid price at the time. Volume was above previous open interest at both strikes, so this is new positioning.

The trader paid $0.50, which is the maximum risk in the trade. He or she stands to make $2.50 if the GDX is above $25 at expiration.

The GDX is up 2.53 percent today to a session high of $20.91. The exchange-traded fund fell to $20.24 yesterday, its lowest price since November 2008.
Share this article with your friends


Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

View more education articles »