We should be buying to reach $23.60, but any pullback should not breach $22GDX. Because $22.72 is the support, selling $22 puts for as long in the future as possible for as many puts as possible to get as much premium for something that should expire worthless. Use that premium to buy GDX calls at the money or to the nearest 50 cents above the spot price as the strike price for January 27. You can’t go wrong with this bullish move.
Rick AckermanJan 23, 2017 @ 17:12
We’re in different worlds, technically speaking. As someone who has been trading options for 40 years, twelve of them on an exchange floor, I stop a mile short of endorsing your option strategy. Buyers of naked calls and puts NEVER have an edge (unless it has been gained criminally).
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We should be buying to reach $23.60, but any pullback should not breach $22GDX. Because $22.72 is the support, selling $22 puts for as long in the future as possible for as many puts as possible to get as much premium for something that should expire worthless. Use that premium to buy GDX calls at the money or to the nearest 50 cents above the spot price as the strike price for January 27. You can’t go wrong with this bullish move.
We’re in different worlds, technically speaking. As someone who has been trading options for 40 years, twelve of them on an exchange floor, I stop a mile short of endorsing your option strategy. Buyers of naked calls and puts NEVER have an edge (unless it has been gained criminally).