ymbol GDX Open Date 11/9/2023 Put or Call Put Expiry Date 12/22/2023 Short Strike 25 Long Strike 24 Price to Open 0.12 Min Width Multiple 2 Risk Ratio 7.33 Return on Risk 13.6% Opening DTE 43 1 Day ROI% 0.32% Max Annual ROI % 115.8%
GDX hit a -2 sig on the weekly timeframe back on Oct 4/5 just like a lot of stuff did. Pushed up and took out the previous bearish selling range, dipping into the gap range sellside liquidity above Grey box. Becaue it made such a V bottom and left so many 4h gaps, running over and through the bearish opposing gaps I think probabilities shift to Bullish continuation. Also, the fact that it pushed back INTO the weekly VA in Blue and held there for about a month makes me think the liquidity is Higher and it's reaching for it.
This is a textbook setup for me, anticipating a -1 sig pullback and then the pricing algo steps in to push higher. The morning open saw the dive down to engage a buyer, then pushed away for a few hours, then I entered on the first 5 min pullback. However, the level doesn't seem to hold this morning and it's hunting for liquidity below on a gap down today.
Chose the 25 short strike as it's about 2.5 sig the expected excursion from the entry -1 sig. I may sell more at the 24 strike if 26.60 is tested at -2 sig. Right now, I anticipate the weekly -2 sig selling level in Green near 25.60 will cause a buying bounce, if not the Daily/4h buying at the Blue line -2 sig doesn't step in before.
This is all happening after Powell speech yesterday afternoon and the QQQ just keeps extending higher reaching for some sellside liquidity.
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This expired end of the year worthless Full credit kept
## Symbol GDX Open Date 11/9/2023 Put or Call Put Expiry Date 12/22/2023 Short Strike 25 Long Strike 24 Price to Open 0.12 Min Width Multiple 2 Risk Ratio 7.33 Return on Risk 13.6% Opening DTE 43 1 Day ROI% 0.32% Max Annual ROI % 115.8% Buyback to Close Open to Roll Closing % Cost on Opening Credit Net Roll % on Opening Credit Closing Date 12/22/2023 Closing Price 0.00 Closed Margin ROI % 13.64% Closed Annual ROI % 115.75%