Cabot Options Institute Income Trader – Alert (GDX)
Gold Miners ETF (GDX)
As part of the Income Wheel approach, we allowed our GDX puts to expire in the money at expiration last week. As a result, we were issued shares at our chosen put strike of 29.
Today, as our Income Wheel strategy states, we are going to sell calls against our newly issued shares in GDX.
We are not selling naked calls, so you need to have at least 100 shares if you wish to enter a new position in GDX. For those of you that are new to Income Trader and wish to follow along with GDX, buying at least 100 shares of GDX for every call contract you wish to sell is required as we are in the covered call phase of the Income Wheel strategy for GDX.
GDX is currently trading for 28.17.
Here is the trade:
Sell to Open GDX March 31, 2023, 29.5 (covered) call for $0.75 (adjust accordingly, prices may vary from time of alert).
As always, if you have any questions, please feel free to email me at andy@cabotwealth.com.