GDX has had some nice pull back so I picked up 200 shares around $38.12 and sold 2 contracts for $1/each yielding $185 after commissions . Assuming I’ll get called I’ll make about 2.2% return (including all commissions). Not bad for two weeks I guess. I did an in-the-money trade because ideally, I’d like to be called and assigned. The Federal Reserve meets on January 31 and I’m concerned that they may begin to lower interest rates and that would be bad (short term) for gold. If the Fed raises rates (fight inflation) then gold may shoot up higher and I’ll look to trade February options.
The next Fed meeting won’t take place until March so February would be free sailing….
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