GDX held up well last week, considering the fever that gripped non-bullion stocks. I have assumed that most subscribers cashed out of call options acquired for a pittance nearly a month ago. I still hold the 6th Sep 29/31 vertical spread myself and plan to keep it until expiration, since there remains an outstanding rally target at 31.57 (see inset). The spread was marked at 0.87 on Friday, but my order to close out a third of my position for 1.35 (which I announced in the chat room) went unfilled; alas, the spread traded no higher than around 1.20. I would not recommend duplicating the spread with just four days left on it. But if GDX pulls back to x=28.60 by Tuesday afternoon, consider buying a few 6th Sep 29 calls naked as a speculation. _______ UPDATE (Sep 4, 10:45 p.m.): I closed out more spreads today for as much as 1.57 but still plan to hold a few for a shot at full value (i.e., 2.00) on Friday. _______ UPDATE (Sep 5, 10:40 p.m.): A few subscribers reported buying calls, but without specifying which. Sit tight for now, since gold’s corrections tend to last longer than a day or two.
GDX – Gold Miners ETF (Last:29.45)