VanEck Vectors Junior Gold Miners ETF (GDXJ), $37.39
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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.