GDX Covered Call Trade

Bought GDX @56.72
STO GDX Oct. 28, 2011 56 Call @ 1.52

This in the money weekly option has only 3 days left before expiration. If it gets called out we'll make $80 per contract for 3 days on a $5520.00 investment. That's a 1.45% return for 3 days or 176.41% annually. These calculations are exclusive of commissions.

Precious metals seemed to have bottomed and began their ascent once again. We would prefer to get called out but if not we'll simply write next week's call of our choosing. If it really craters we might write a monthly call. We have downside protection on this 3 day  trade to $55.20.