Loading ...OK, GDX call spread for June 2026…
For the bold and the brave…So, you buy a GDX June 90 @10.00 and sell a GDX 130 @1.85, so net outflow of around 8.15 to put on one contract.
Your breakeven is 12% above the current GDX price (@98.15) and your max gain is 300% at 130 or better. Once I cash out of some GLD and SLV calls, this is how I will then play leverage. I will go out at least 6 months to allow for crazy price moves. I have enough confidence to put on this trade and expect GDX to be at least 12% higher in June. If it hits 130 (48% higher), you make 300%, basically 6x leverage. Not investment advice, just what I plan on doing to turbo my gains in trading accounts.
I would wait until a major sell off in SPX which should pull GDX down and compress call premiums then put out the trade.
And that’s the value of the tent. Good concept AA. Thanks for sharing