Wow, I'm not sure why, but my scan didn't catch this on
Stockcharts until now? Stockcharts.com updates their intra
day scan feature once an hr, it didn't show up earlier today, but
is now showing up.
Anyway the BPGDM is crossing below the 8 day MA today, which
initiates a short for the GDX system.
yes it's late, however the exchanges are open for another 2 1/2
hrs, therefore you can enter the trade after hrs if you wish.
sorry for the late notification, however as I explained above,
the scan didn't show this during the day.
Posted by dallassteve on 17th of Dec 2010 at 09:38 pm
thanks, Matt. I had been waiting for this signal.
Perhaps it is better that the notice came late. I think
I will try one of the options you gave: see if I can short at a
better price next week. I guess that is not a pure system
entry, but it makes sense to me.
WIth GDX high being 64.62 I am looking
to buy One GDX 60 Call and sell 2
short 63 calls for a debit of around 30
cents. This is my hedge up to
66.00 GDX minus the price of the
options. I will than go short GDX and
will be already in the money on the option because I am long on the
60.00 call. Any thoughts .. this looks like a cheap way
of shorting GDX... you will have to cover the short if GDX makes it
to 66.00. These are Jan
options.
The Long jan 60.00 put short 2 jan 57.00 puts
on GDX for a 24 cent debit also looks
interesting. You will be profitable up
to around 54.24 with your maximum
profit at GDX being 57.00 57.00 strike is a
liitle more than 5 percent down from we are now.
You also have a lot of support at the 57.08 and
53.07 You can always go short GDX below 54.24 if
GDX is in "free fall".
Any thoughts? The first case is
better if you are bearish on GDX..as you have no chance of being
PUT GDX to you long. Options are not for
beginners...so thing it out first and don't trade more than your
account can handle. 1 option contract represents
100 shares.
The strategy I would personally use would depend on how bearish
I am on GDX. If I'm bearish, I would just short the stock outright.
If I'm mildly bearish or neutral, I prefer to just sell short the
out-of-the-money calls like fixdgear mentioned below. This is a
good strategy to use if I don't have any strong bias on the
underlying stock. Or I would write a covered put. Short the stock,
and short the out-of-the-money puts or at-the-money puts. Of
course, if GDX drops big, one would make less employing these
strategies instead of just shorting the stock outright.
Posted by fixdgear on 18th of Dec 2010 at 10:34 am
you could also sell naked calls...what i like about this is if
in case the GDX sits here for a period of time before it
moves time erodes the calls and expire worthless and u get to keep
the premium...if i had done that with PGN for example.i would be up
alot more than just buying the puts and watching the stock range
bound trade..and watch the time errosion on the puts..
Depending on your margin on your account.. you might still want
to buy a way out of the money long to hedge your
short... You never know if there will be a huge spike in GOld due
to event beyond our control and our peace through weekness ideology
in DC under our present admin.
Well one thing that I want to point out is that the 60 period
Stochastics on the 60 min chart is oversold and trying to turn up,
so there is a chance that we could short GDX at higher prices early
next week, we'll see I guess
Posted by frtaylor on 17th of Dec 2010 at 09:37 pm
Yup, I'm long DZZ from the trendline break. Went ahead and
shorted some GDX after hours, tho. Gotta play those mechanical
trades! Can't wait for the SPY....
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BPGDM and GDX swing system
Posted by matt on 17th of Dec 2010 at 05:16 pm
Wow, I'm not sure why, but my scan didn't catch this on Stockcharts until now? Stockcharts.com updates their intra day scan feature once an hr, it didn't show up earlier today, but is now showing up.
Anyway the BPGDM is crossing below the 8 day MA today, which initiates a short for the GDX system.
yes it's late, however the exchanges are open for another 2 1/2 hrs, therefore you can enter the trade after hrs if you wish.
sorry for the late notification, however as I explained above, the scan didn't show this during the day.
me hate stockcharts.com alot
Posted by breaktom on 18th of Dec 2010 at 01:02 am
me hate stockcharts.com
alot
GDX signal
Posted by dallassteve on 17th of Dec 2010 at 09:38 pm
thanks, Matt. I had been waiting for this signal. Perhaps it is better that the notice came late. I think I will try one of the options you gave: see if I can short at a better price next week. I guess that is not a pure system entry, but it makes sense to me.
GDX options short idea
Posted by zach06 on 18th of Dec 2010 at 08:18 am
WIth GDX high being 64.62 I am looking to buy One GDX 60 Call and sell 2 short 63 calls for a debit of around 30 cents. This is my hedge up to 66.00 GDX minus the price of the options. I will than go short GDX and will be already in the money on the option because I am long on the 60.00 call. Any thoughts .. this looks like a cheap way of shorting GDX... you will have to cover the short if GDX makes it to 66.00. These are Jan options.
The Long jan 60.00 put short 2 jan 57.00 puts on GDX for a 24 cent debit also looks interesting. You will be profitable up to around 54.24 with your maximum profit at GDX being 57.00 57.00 strike is a liitle more than 5 percent down from we are now. You also have a lot of support at the 57.08 and 53.07 You can always go short GDX below 54.24 if GDX is in "free fall".
Any thoughts? The first case is better if you are bearish on GDX..as you have no chance of being PUT GDX to you long. Options are not for beginners...so thing it out first and don't trade more than your account can handle. 1 option contract represents 100 shares.
The strategy I would personally
Posted by cw12 on 18th of Dec 2010 at 01:54 pm
The strategy I would personally use would depend on how bearish I am on GDX. If I'm bearish, I would just short the stock outright. If I'm mildly bearish or neutral, I prefer to just sell short the out-of-the-money calls like fixdgear mentioned below. This is a good strategy to use if I don't have any strong bias on the underlying stock. Or I would write a covered put. Short the stock, and short the out-of-the-money puts or at-the-money puts. Of course, if GDX drops big, one would make less employing these strategies instead of just shorting the stock outright.
you could also sell naked
Posted by fixdgear on 18th of Dec 2010 at 10:34 am
you could also sell naked calls...what i like about this is if in case the GDX sits here for a period of time before it moves time erodes the calls and expire worthless and u get to keep the premium...if i had done that with PGN for example.i would be up alot more than just buying the puts and watching the stock range bound trade..and watch the time errosion on the puts..
naked
Posted by zach06 on 20th of Dec 2010 at 08:26 am
Depending on your margin on your account.. you might still want to buy a way out of the money long to hedge your short... You never know if there will be a huge spike in GOld due to event beyond our control and our peace through weekness ideology in DC under our present admin.
naked is, well, naked.... Spreads can
Posted by steveo on 20th of Dec 2010 at 12:49 am
naked is, well, naked....
Spreads can greatly mitigate the risk.
Well one thing that I
Posted by matt on 17th of Dec 2010 at 11:58 pm
Well one thing that I want to point out is that the 60 period Stochastics on the 60 min chart is oversold and trying to turn up, so there is a chance that we could short GDX at higher prices early next week, we'll see I guess
gdx
Posted by fixdgear on 17th of Dec 2010 at 06:25 pm
well dzz broke sooner so if al ready long that isnt one cool?..haaa
Yup, I'm long DZZ from
Posted by frtaylor on 17th of Dec 2010 at 09:37 pm
Yup, I'm long DZZ from the trendline break. Went ahead and shorted some GDX after hours, tho. Gotta play those mechanical trades! Can't wait for the SPY....