We hold two August 23.63 calls (or a multiple thereof) with an effective cost basis of 1.45 after closing out half of our position at 2.25. Just for the hell of it, during yesterday’s impromptu trading session, I suggested buying April 25 calls for 0.15, but the order was time- and price-limited because of the mayfly nature of these options. If you bought any, be warned that they will grow heavier by the hour on Friday if GDXJ does no better than stay buoyant. We’ll look to sell some premium against our Auggie 23.63s if GDXJ continues to move higher, but for now do nothing further. ________ UPDATE (11:25 a.m. EDT): This vehicle has reverted to its usual, sick-and-tired self, meandering lower after a promising rally last week. However, because we are aboard at a great price, we’ll simply stick with the position. That could change, however, if there’s bearish interaction with the 22.28 midpoint support of a pattern that projects to 20.72 (Daily, A=25.14 on 4/2, and B= 22.01 on 4/10. ______ UPDATE (April 6, 2:35 a.m. EDT): With immediate downside risk to 20.66, or even to 19.50, let’s set a stop-loss at 1.55 and stick with it. Better to re-establish a position later at a higher price than subject ourselves to the pain and desperation of having to hope this piece of crap turns around. _______ FURTHER UPDATE (April 23, 1:58 p.m. EDT): In fact, the little piece of crap did NOT turn around, and so we exited our option position for 1.50 — slightly more than we paid for it. We’ll try again later, but please note that today’s price action has confirmed the likelihood of more downside to at least 20.72. If GDXJ turns higher without hitting that Hidden Pivot, we should be prepared to ‘camo’ ourselves long by buying 400 shares of stock. On the 5-minute chart, the opportunity would come on a b-c pullback from just above 21.95, an external peak recorded today on the way down.
