I mentioned historical close for gold and now Gold is in new territory assuming it can close above $850 at the end of today. There is pretty impressive gains in Gold Feb futures as those are trading over +$20/ounce, now above $860 (as of this post’s writing). I played gold’s move via GDX and as soon as it hit 15% for a ITM call option, I was out of the trade.
Here is the screen shot of the trade. I traded it again when it dipped a little to collect another +10% gains. GDX is an indirect gold play as this is made-up of gold manufactures’ stocks. And just like any other stocks, gold manufacturer’s stocks are subjected to the market mood. So know the character of underlying before trading. I have seen GDX going down even though gold was marching higher.
Even though, there are watch-out in GDX, this is one of my favourite underlying to play gold’s intra-day move as well as long term direction. As soon as gold start to hit closes above $850 I am sure GDX will have terrific move. Think of this, your product’s production cost is almost the same, but the sale price is higher..where does it go? to the margins and in most cases it adds-up to the bottom line. So GDX is an interesting gold leverage play.
Pls do your homework well prior to entering into speculative trading.
Profitable trading, OP