Subscribers should be long a round lot (or multiple thereof) with a profit-adjusted cost basis of 37.25. The position remains from an original 400 shares. We are also short an August 16 call at the 41 strike that has a cost basis of 2.55, the result of a covered write advised on Friday. For now, do nothing further. _______ UPDATE (August 12, 12:11 a.m. EDT): Since my outlook for gold futures is bullish, I’ll suggest covering the call on any weakness. Use a 1.55 bid on the opening, adjusting as appropriate thereafter if the order has not been filled. ______ UPDATE (August 13, 9:16 p.m.): Hello?? The options didn’t even trade. I am still advising that they be covered when GDXJ is on the downslope, a condition which obtained throughout most of yesterday’s session. With just two days remaining before the calls expire, you should pay no more in time premium than whatever the 41-strike puts are selling for (i.e., around 0.15). ______ UPDATE (August 16): The short call could have been covered on the opening for 0.35. Imputing the gain thereof to our 100-share position has effectively lowered its cost basis to 35.85. No further action is necessary at this time.
