Don't get too comfortable with the apparent calm in the market this week, as August rolls to an end expect volatility to heat up, especially after Labor Day weekend. Accordingly, all new positions will be emphasizing additional time over immediate leverage, starting this new position set out below. We are adding GDX calls to the GLD calls already being held in the Premium Options Portfolio. Insofar as those Sep calls expire in 30 days, let's go out a few months and pay up for additional time for this play in the precious metals sector. GDX Longer term target is into the mid-$50's by the end of this calendar year, which would equate to a 3X to 5X return on the Jan 17th $40C, depending on how quickly GDX moves through the $40's. GDX Jan 17th Calls More aggressive traders can go further out of the money via the $45 strike, looking for a 8X to 10X return.
