Below is a daily chart of VanEck Vectors Junior Gold Miners ETF (GDXJ), $37.39.
Trade: We recommend selling 10 Feb 40/45 bear call spread (16 DTE) for a net credit of $500 (current mid-point).
Strategy: Selling premium with high volatility in sideways consolidation, and with U.S. Dollar (UUP) on support, which should make gold fall if it UUP rallies. This will also be a partial hedge to our bull diagonal in AG.
Max Gain: Premium received.
ROI: 11% , with 8.3% cushion to break even of $40.50.
Max Loss: $4,500 but will be less with stop posted.
Stop Loss: $38.72.
Below is a daily chart of NVIDIA Corporation (NVDA), $113.41.
Trade: We recommend buying 10 weekly (2/10) 106/118 bull call spread (9 DTE) for $5.25/share or better. Although premiums are spiked, this debit is less than the intrinsic value, giving us time decay and cushion for a pull back.
Strategy: Breakout on daily and anticipated rally into earnings. Note: Close before 2/9 earnings.
Max Loss: Debit paid.
Stop Loss: $107.98.
Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director and Pristine Founder
Dan Gibby
Chief Options Strategist
Follow Greg on Twitter and StockTwits to get real-time updates:
Twitter: @GregCapra
Stocktwits: Greg_Capra
