Opening (IRA): GDX June 21st 24 Monied Covered Call
... for a 22.83 debit.
Comments: Selling the -75 call against a one lot here out in June where I have covered calls at the 29, 27, and now 24 strikes. 1.17 max on BPE of 22.83; 5.12% ROC at max; 2.56% at 50% max.
Going monied CC here in lieu of an equivalently delta'd short put to take advantage of call side IV skew (39.6% on the call side; 29.18% on the put side at the 24 strike).
This is probably about as much BP I want to devote to a miners position, which I view as an indirect rate cut play with the notion being that the dollar weakens somewhat, gold strengthens, and miners indirectly follow with bets being that there's a rate cut in May. It may naturally end up being later; the market hasn't exactly been "spot on" with either the timing of depth of cuts of late ... .
Alternatively, GDXJ/GDX are at the top of my screener for 30-day IV, so I'm just going where the juice is at.
Comments: Selling the -75 call against a one lot here out in June where I have covered calls at the 29, 27, and now 24 strikes. 1.17 max on BPE of 22.83; 5.12% ROC at max; 2.56% at 50% max.
Going monied CC here in lieu of an equivalently delta'd short put to take advantage of call side IV skew (39.6% on the call side; 29.18% on the put side at the 24 strike).
This is probably about as much BP I want to devote to a miners position, which I view as an indirect rate cut play with the notion being that the dollar weakens somewhat, gold strengthens, and miners indirectly follow with bets being that there's a rate cut in May. It may naturally end up being later; the market hasn't exactly been "spot on" with either the timing of depth of cuts of late ... .
Alternatively, GDXJ/GDX are at the top of my screener for 30-day IV, so I'm just going where the juice is at.
Trade closed: target reached:
Hit 50% max today, closing for a 23.42 debit. .59 ($59) profit; 2.58% ROC. Still have the Sept 20th 29's, June 21st 27's, and August 16th 22's on.
