I sent my free AllAllan newsletter subscribers this special update on June 20th:
Special Situation Gold and Gold Miners
Within it there were two option recommendations:
GLD Aug $130 Calls
GDX Aug $25 Calls
As of Friday the GDX trade is up 362% while the GLD trade is up 55%. What does the outperformance of the Gold Miners Index mean, if anything? It means we should be focusing in on individual mining stocks which are highly leveraged to the price of Gold. When Gold runs, the mining stocks sprint. When mining stocks sprint, options on mining stocks rocket higher exponentially, i.e., GDX is up 4X in one month. Gold has been widely ignored since the 2011 major top. If it is now entering a multi-year secular bull market, and that is what the chart posted on June 20th suggests, a fortune will be made using gold miners' options to exploit the trend.
This is as good a time as any to try out our service. We will be covering the mining stock sector by identifying the stocks that exhibit superior relative strength and trading them in two time frames, Intermediate (Premium Service) and Short-Term (PRO Service).
The best thing that could happen right now is for Gold to go down for a few days, just long enough to generate a slew of new Buy Signals in the basket of mining stocks we follow. In a month I will post another free update chronicling performance of our Gold portfolio, just as I have today. Sit on the sidelines, or try out trading these options with us for that month. Your choice.