GDX (GOLD MINERS ETF) -- A GOOD PLACE TO ADD/INITIATE LONG HERE
With gold hovering just north of 1250, having lost a good deal of luster to pesky Greenback strength, this is possibly a good place to add into current bullish gold positions and/or initiate one here.*
22 and change, after all, appears to be fairly long-term support for GDX, so I would look to add bullish positions via naked short puts or short put verticals at the 21 strike or below (the Dec 16th 21 pays .80/contract). The alternative is to wait to see if /GC 1250 holds up here or gives up the ghost on the increased probability of a Dec rate hike or the currently increased likelihood that the US Presidential election result will be in Clinton's favor, which is generally viewed as market bullish/risk off.
* -- I'm currently in a GDX covered call with a per share cost basis around 24/share and really only want to add position if it dramatically improves that cost basis. Not sure whether being put shares at 21 would do that, so I may thumb twiddle to see if we get something around 17.50. You never know, really ... .
22 and change, after all, appears to be fairly long-term support for GDX, so I would look to add bullish positions via naked short puts or short put verticals at the 21 strike or below (the Dec 16th 21 pays .80/contract). The alternative is to wait to see if /GC 1250 holds up here or gives up the ghost on the increased probability of a Dec rate hike or the currently increased likelihood that the US Presidential election result will be in Clinton's favor, which is generally viewed as market bullish/risk off.
* -- I'm currently in a GDX covered call with a per share cost basis around 24/share and really only want to add position if it dramatically improves that cost basis. Not sure whether being put shares at 21 would do that, so I may thumb twiddle to see if we get something around 17.50. You never know, really ... .
Comment:
As an alternative to playing GDX, there are a wide variety of smaller, individual gold miners such as ABX, AUY, HL, etc. that are cheaper to put on.