Trade Continuation: GDX Covered Call

Today I continued a GDX Gold Miner's ETF investment in a traditional IRA as follows:

10/25/2011  10:37:57     Bought 100 GDX @ 56.7268                              -5,682.67    
10/25/2011  10:38:30     Sold 1 GDX Oct 28 2011 56.0 Call @ 1.52               141.23    
10/27/2011  10:52:44     Bought 1 GDX Oct 28 2011 56.0 Call @ 3              -310.76    
10/27/2011  10:53:06     Sold 1 GDX Nov 19 2011 56.0 Call @ 4.1                399.23    
11/10/2011  10:11:02     Bought 1 GDX Nov 19 2011 56.0 Call @ 4.6          -470.76    
11/10/2011  10:12:04     Sold 1 GDX Dec 17 2011 56.0 Call @ 5.75              564.22
12/19/2011  10:15:55     Sold 1 GDX Feb 18 2012 56.0 Call @ 1.5                139.23

With this transaction our amount out of pocket is down to $52.20/share. That's good because the ETF has dropped to 52 and change. We are bullish the precious metals and believe that the recent downturn provides a buying opportunity. In fact we have some GDX puts that we wrote at the 52 strike.

It should be noted that before we entered into this trade we actually collected $489.25 in put money which we are not reflecting in these calculations. In any event, if we get called away in February we will make $380 which equates to 6.9% or ~21.1% annual. If we don't get called away then we'll write new calls, with a good hard look being given to the 56 strike again.