Today at the close I entered into the following transaction in a taxable account:
03/20/2012 STO 3 GDX Apr 21 2012 47.0 Put @ 0.53 146.75
As stated in my prior post I believe that GDX has reached it's support level of $50/share. I sold these while GDX was trading at ~$49.60/share. If these puts expire worthless we will earn $146.75 in 32 days on margin maintenance of $2,350.00. This equates to a return on maintenance of 6.24% or 71.17%f annual. If this precious metal miners ETF drops we should be able to roll out and down for a net credit. As such, an exit strategy is in place. As long as there is not an immediate drop in price we have time decay working in our favor and our prospects for rolling increase each day.
Note: ITM the maintenance increased to ~$3,000.
A nice return.
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