Will gold miners finally rebound?
Chris McKhann | [email protected]
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.
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