Profitable Trades on Gold Stocks: Market Vectors Gold Miners ETF (GDX)
That means that it also captures the current equity markets’ animal spirit. This may lend support to the GDX if gold itself encounters pressure, say, from a rising U.S. dollar.
The Trade: Sell the GDX Sept $17/$15 credit put spread and have an 85% theoretical chance to yield 15% on money risked.
Usually, I like to hedge my bet by selling opposing risk, but I will opt out in this case. Technically, GDX looks like it’s about to break out. If the lower-high trend line is breached, it could invite more technical buyers. The bulls will then try to retest $28 per share.