GDXJ Analysis

VanEck Vectors Junior Gold Miners ETF (GDXJ)

Update 4/26/2019 I exited GDXJ on April 26, which was 21 days prior to expiration, for an $0.89 debit, with shares at $29.92 per share. The loss on the position was $0.27 after a $2.38 decline in the shares price.

The price drop followed a decision by the Federal Open Market Committee, announced March 20, to stop raising interest rates. Basically, this is gold acting in its traditional role as a hedge against inflation.

Shares declined by 7.4% over 42 days, or a -64% annual rate. The optins position produced a loss of 30.3% for a -274% annual rate.

On March 15 I entered a short iron condor spread on GDXJ, using options that trade for the last time 63 days later, on May 17. The premium is a $0.62 credit and the stock at the time of entry was priced at $32.30.

The profit zone for this position is between $36.62 on the upside and $27.62 on the downside.

I entered the position before formally restarting with my new trading rules.

The implied volatility rank (IVR) stands at 34.

Premium: $0.62 Expire OTM
GDXJ-iron condor Strike Odds Delta
Long 39.00 94.0% 7
Break-even 36.62 88.5% 13
Short 36.00 83.0% 19
Short 30.00 75.0% 23
Break-even 27.62 84.5% 14
Long 27.00 94.0% 5

The premium is 21% of the width of the position’s wings.

The risk/reward ratio is 3.8:1.

By Tim Bovee, Portland, Oregon, April 27, 2019


Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.

Creative Commons License

All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Based on a work at