Trade Alert (BITO, GDX)
As part of the Income Wheel approach, we allowed our BITO and GDX puts to expire in-the-money at expiration last week. As a result, we were issued shares at our chosen put strikes.
In BITO, we were issued shares at the 16 strike and GDX at the 29 strike. Our break-even in BITO stands at 15.18 while GDX’s break-even is 28.34.
So, with BITO trading at 13.81, we are currently down $2.19 on our position. Same goes for GDX at the moment; with GDX currently trading for 26.12 we are currently down $2.22 on the position. I’m not overly concerned with either position at the moment.
Today, as the Income Wheel strategy states, we are going to sell calls against our newly issued shares in BITO and GDX. We are not selling naked calls, so you need to have at least 100 shares if you wish to enter a position. For those of you that are new to Income Trader and wish to follow along with either BITO, GDX or both, buying at least 100 shares of BITO or GDX for every call contract you wish to sell will be required as we are in the covered call phase of the Income Wheel strategy.
Here are the trades:
ProShares Bitcoin ETF (BITO)
Sell to Open BITO August 19, 2022 16 calls for $0.50.
VanEck Gold Miners ETF (GDX)
Sell to Open GDX August 19, 2022 28 calls for $0.63.