Stock / Symbol: Gold Miners ETF / GDX
Strategy: Diagonal Call Spread
Trade entry date / price: 14 Apr 2021 / $35.70
Price at this post: $37.55
Update / Reasoning: With GDX nearing the strike of our short call, I'm entering in a GTC exit order that should fill either with GDX trading up to the $38.50 level, or on Monday with GDX at/over $37.50. If filled at the limit order, this trade will result in an 18+% return. The Greeks on this Diagonal Call Spread are currently: 19.9 Delta, 3.6 Theta, and 8.4 Vega.
Trade Exit Order:
STC 1 GDX 21Jan22 33 call
BTC 1 GDX 14May21 37.5 call
For a min net credit of $6.00 per contract (GTC order, limit order). The mid is currently at a credit of $5.90.
Analysis:
Max Risk: $535
Max Reward : $135 or 25% with GDX at $37.5 on May 14th
Profit Range: GDX between $35.45 and $45 by May 14th
Estimated Commission (round trip): $3.90
Suggested Stop: $30.63
Anticipated Profit / Loss upon fill: $102 or 19.6% (pre commissions)
