Gold miners attract long-term bet
A big call spread is looking for a long-term bullish in the Market Vectors Gold Miners Fund.
optionMONSTER's Heat Seeker system shows that a trader bought 10,000 January 2016 29 calls for $1.15 and sold 10,000 January 2016 40 calls for $0.30. Although the volume at the higher strike was below its previous open interest, this looks like a new vertical spread .
The trader paid $0.85 to open the spread, and that is the maximum potential loss. The maximum gain of $10.15 would be realized with the GDX at or above $40 at expiration a year from now. (See our Education section)
The GDX rose 4.65 percent to $20.71 on Friday, its highest close since late October. The exchange-traded fund hit a 52-week low of $16.45 on Nov. 5.
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