Stock / Symbol: Gold Miners ETF / GDX
Strategy: Diagonal Call Spread
Trade entry date / price: 14 Jul 2022 / $25.70
Price at this post: $28.10
Update / Reasoning: With GDX now up above $28, and thanks to the numerous calls sold against the position, this trade is now up by about 29% . The position's Delta has moved from 26 to 8 since the last adjustment. Since the position's Delta will go negative with GDX trading up just another $0.40 or so, I'm going to take profits here. The adjusted cost basis of the open 27/28 call spread is $2.28.
Trade Exit Order:
STC 1 GDX 16Jun23 27 call
BTC 1 GDX 18Nov22 28 call
For a min net credit of $3.30 per contract (GTC order, limit order). The mid is currently at a credit of $3.34. I was just filled at $3.35
Analysis:
Max Risk: $360
Max Reward: $160 or 44% with GDX at $28.5 on Nov 18th
Profit Range: GDX between $25.25 and $33.50 by Nov 18th
Estimated Commission (round trip): $5.20
Suggested upside stop: $29 (take profits)
Realized Profit / Loss: $106 or 29.4% (pre commissions)
