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Income Trader
Reliable Income From Time-Tested Strategies

February 12, 2024

I’m selling more call premium in GDX today. We’ve reaped most of the call premium from our February 16, 2024, 29 calls so I’m going to buy them back and sell more premium going out to the March expiration.

I’m selling more call premium in GDX today. We’ve reaped most of the call premium from our February 16, 2024, 29 calls so I’m going to buy them back and sell more premium going out to the March expiration.

Gold Miners ETF (GDX)

GDX is currently trading for 27.30.

Here is the trade (we are not selling naked calls; you must own at least 100 shares of GDX before placing the trade):

Buy to Close GDX February 16, 2024, 29 (covered) call for $0.04 (adjust accordingly, prices may vary from time of alert).

COI_IT_021224_GDX_close.png

Once that occurs:

Sell to Open GDX March 15, 2024, 29 (covered) call for $0.44 (adjust accordingly, prices may vary from time of alert).

COI_IT_021224_GDX_open.png

Delta of short call: 0.29
Probability of Profit: 73.91%
Probability of Touch: 52.55%
Total net credit: $0.44
Max return (cash-secured): 1.6%

Risk Management

We use GDX as part of our Income Wheel Portfolio, so if GDX closes above our call strike at expiration, our shares will be called away and, in most cases, we will reap the capital benefits of the stock increase, plus the premium acquired. Until that point, we will repeatedly sell calls on GDX.

As always, if you have any questions, please feel free to email me at andy@cabotwealth.com.


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Andy Crowder is a professional options trader, researcher and Chief Analyst of Cabot Options Institute. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.