Closing This Trade in the Gold Miners ETF

Gold has been on a solid run, and the August 28 modified covered-call position in the iShares Gold Miners (GDX) has given us about all she's got to give. With the ETF trading up near $25.50 and one week left until expiration, we've captured 84% of our upside in this trade, so it is time to close it down. This is a case where I could have done better simply buying the stock, but I opted for a slightly less aggressive approach in order to manage risk.

The initial trade was long the stock, then long 1 September 15 $24 call and short 2 September 15 $24.50 calls for every 100 shares. It is time to close the position entirely. This should net around $2,483 from the initial $2,392 cost -- for a 3.8% gain in two weeks' time. Our maximum upside in the trade was $108, so I'm happy to close this one down close to the maximum potential profit....73 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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