We bought six June 25 puts yesterday for an average of 1.33. With a delta value of 16, the puts make us short the equivalent of 96 shares, but that value will increase if GDX continues to fall. (This is the “backspread effect”). Let’s try to lock in a riskless profit by shorting six June 23 puts (GBJRW) for 1.35 against our position. Make the order good-till-canceled. If it’s filled, we’ll have legged into the June 25-June 23 put spread at no cost. The total position at that point would have $1,200 of profit potential and no possible loss — a riskless hedge against weakness in gold shares. Regarding the underlying stock, my worst-case target for the next 3-5 days is 30.70, predicated on the breach of a midpoint support at 32.72. Both of these Hidden Pivot targets are shown in the accompanying chart.