JUNIOR GOLD MINERS: The Art Of Gold Digging (+50%)
We Dug Deep And Were Rewarded
A golden moment with a last-minute volatility contraction.
Who would have thought gold-digging could be that effortless?
We close the trade with a fifty percent return on equity.
1. Recap Situation
We found out why gold diggers smile, and we couldn’t confirm Mark Twain’s belief that a mine is a hole in the ground with a liar standing next to it. Instead, we only witnessed theta burn, volatility contraction, and faces full of Goldilocks.
We believed a temporary bottom for GDXJ was in, and we have not experienced a lower low throughout the trade.
Check out the original BrainDoζer below.
2. Why Now?
The price of the junior gold miners went sideways as anticipated, and implied volatility contracted over the last couple of days, with earnings releases as the most significant contributor.
We also like to close trades around twenty days before maturity to minimize last-minute gamma risks. Happy end.
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