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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.
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The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

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