GDX – Gold Miners ETF (last: 42.12)

We hold two June 43 calls with a cost basis of 1.75.  Since there are  no longer any front-month expirations that we can short against our position, let’s try to spread off the time-decay risk by offering two June 45 calls for 1.20, good-till-canceled.  Upside potential over the near term is to as high as 43.92 My apologies for letting this position slip through the cracks, since we could have further reduced our risk by shorting some May 43 calls.  The addition over the weekend of an Open Positions/Actionable Advice listing for Rick’s Picks should help you and me both keep track of recommendations. _______ UPDATE (3:19 p.m.):  The short sale was completed today at the suggested price, 1.20 –  a nickel off the intraday high. We now own the June 43-45 call spread for a 55-cent debit.  Since it has the potential to go to a $2.00 credit, our risk:reward ratio is now properly adjusted and quite attractive.

Tagged as: ETF, Forecast, GDX, Gold Miners