Today with GDX trading at ~51.70 I entered into the following transaction in a taxable account:
12/30/2011 STO 3 GDX Jan 21 2012 48 Puts @.5 137.71
I feel that precious metals just hit a bottom and will be moving back up. In any event GDX, a precious metals miners ETF, has shown great support at 50 for quite some time. Writing these at 48 give even more buffer than that. This trade expires in 22 days. The margin maintenance requirement is 2323.97. If these puts expire worthless the return on margin (ROM) is 5.92% or 98.2%.
Great puts
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