My Trade Plan Details:

• GDX Sept 15, 2023 $29 PUTS near $.45
• Stop: Close above $30
• Target 1: $28
• Target 2: $27

BONUS Put Spread Idea:

GDX Sept 22 BUY $30 put & SELL $28 put for $.90 net debit.

My Reasoning:

This week, I am on the fence about market direction.  With $VIX trading so low, bonds not holding their recent bounce and the QQQ’s having trouble with new highs, my gut says we are headed lower this week.

That said, I think interest rate-sensitive stocks like tech, homebuilders, and miners are the most likely to fall. I find it hard to believe those will rally, unless bonds suddenly recover.

Of those sectors, I think gold stocks are showing the most weakness already and that is what I am looking to bet against this week.

My plan for GDX this week is to get started on a partial position sometime today, hopefully on a slight bounce higher (this would make the puts go lower.)

Then I’d like to add to the trade 1-2 days later, assuming GDX is still under my stop price of $30.  

If things go my way, I think we will see GDX fall to under $28, which is my first target, and then we could see $27 or lower after that.

I am only looking for a small move lower on GDX, so I am going with options that expire in less than 2 weeks in order to capitalize on that.  This creates more risk for the trade, but it also could have more upside for me if it works out. 

It is going to be a fun week of trading…I hope you are ready for it!