VanEck Vectors Junior Gold Miners ETF (GDXJ)

Daily Chart


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.