Trade Alert: GDX call option

By Stephen Leeb • February 8, 2018

Buy to open the VanEck Vectors Gold Miners ETF (NYSE: GDX) June 15, 2018 $22 call option. Pay no more than $1.48.

My gold stock indicator is bullish enough to warrant buying a call option on the GDX, the gold miner ETF.

For the readers following my Three-Pot System, this is a Pot-1 trade.

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Ajax

02/08/18 ‐ 9:56am ET February 8, 2018 at 9:56am ET

The June 15 call? Not 18th right?

Ajax

02/08/18 ‐ 10:03am ET February 8, 2018 at 10:03am ET

Anyway, I am in at $1.40.

Scott Chan

02/08/18 ‐ 10:42am ET February 8, 2018 at 10:42am ET

Dear Ajax,

Yes it was a typo. There are no June 18 options. Apology for the typo.

MarkS

02/08/18 ‐ 10:08am ET February 8, 2018 at 10:08am ET

Jun 15 $22 call filled @ $1.40 @ Fidelity

Victor

02/08/18 ‐ 10:16am ET February 8, 2018 at 10:16am ET

Did you mean June 15 2018

Victor

02/08/18 ‐ 10:20am ET February 8, 2018 at 10:20am ET

Filled at $1.44

Scott Chan

02/08/18 ‐ 10:41am ET February 8, 2018 at 10:41am ET

Dear Victor,

Yes it should be June 15. Apologies for the typo.

Dave

02/08/18 ‐ 10:48am ET February 8, 2018 at 10:48am ET

Not familiar with the “pot” system…can you elaborate a little?

Scott Chan

02/08/18 ‐ 1:32pm ET February 8, 2018 at 1:32pm ET

Dear Dave,

The Three Pot System refers to a trading system Steve Leeb carried over from Aggressive Trader. (Aggressive Trader has just merged with Systematic Wealth.)

I will post more details later, but to make a long story short, the 3-Pot System is this:

You start with a sum of money dedicated to trading high-risk, option-related strategies. You separate the fund into three equal “pots.” You keep them separate.

Pot 1 is reserved for ETF option trades based on Steve’s proprietary market indicators, which he has spent countless hours updating and improving over the years. He has indicators for stocks, gold, gold stocks, oil, oil stocks, bonds, and the dollar.

Pot 2 and Pot 3 are reserved for other types of trades that are not directly indicator driven. These could be stock or option trades. And he recommends using margin when trading stocks in Pot 2 and Pot 3 to increase leverage.

The idea is to keep the funds dedicated to Pot 1, Pot 2, and Pot 3 separate from one another.

Paul

02/08/18 ‐ 10:48am ET February 8, 2018 at 10:48am ET

Filled at $1.41.

Dave

02/08/18 ‐ 10:57am ET February 8, 2018 at 10:57am ET

Filled at $1.43

Larry Johnson

02/08/18 ‐ 11:05am ET February 8, 2018 at 11:05am ET

In at 1.40.

Benny K

02/08/18 ‐ 11:07am ET February 8, 2018 at 11:07am ET

In at 1.39 at Schwab

Benny K

02/08/18 ‐ 11:12am ET February 8, 2018 at 11:12am ET

I did not recieve this alert via text, just happened to check the web site and saw it posted. Should we expect to recieve text alerts for these option trades?

Scott Chan

02/09/18 ‐ 2:00pm ET February 9, 2018 at 2:00pm ET

Dear Benny,

I checked with our customer service team. It seems you can turn on text msg notifications by going here:

https://www.investingdaily.com/my-account/#notifications

If you meant you already have set up your account to receive text alerts but did not receive it for this particular trade, let me know.

Benny K

02/09/18 ‐ 4:49pm ET February 9, 2018 at 4:49pm ET

Hi Scott,
I am set up already for text alerts and have been recieving them for over a year. I finally did get the text alert for GDX but it was late in the afternoon so I’m not sure what happened. I did get the alerts for today in a timely manner.
Thanks

Jeffrey J

02/08/18 ‐ 11:24am ET February 8, 2018 at 11:24am ET

Filled @ $1.48 at Fidelity.

Rick

02/08/18 ‐ 11:29am ET February 8, 2018 at 11:29am ET

Filled at $1.43 on Fidelity.

Scott Chan

02/08/18 ‐ 1:35pm ET February 8, 2018 at 1:35pm ET

For everyone interested in Steve Leeb’s “Three Pot System,” Jim has just posted Steve’s original writeup in the forum:

https://www.investingdaily.com/systematic-wealth/forum/41115/steve-leebs-3-pot-system-for-maximizing-gains-2

Ronner

02/08/18 ‐ 3:12pm ET February 8, 2018 at 3:12pm ET

Filled @ 1.45

Larry Johnson

02/14/18 ‐ 10:11am ET February 14, 2018 at 10:11am ET

Stephen,
Do you have an exit price/strategy on this?
I didn’t see one….if I missed it, I apologize.
Tnx.
LJ

Scott Chan

02/14/18 ‐ 10:29am ET February 14, 2018 at 10:29am ET

Dear Larry,

Steve just recommended to close the option at market.

As far as holding period, it mainly depends on how the indicator signals move. But at times, Steve will just take a profit too.

Larry Johnson

02/14/18 ‐ 10:38am ET February 14, 2018 at 10:38am ET

Thanks Scott.
I’m out at 2.17.
(2.17 – 1.40) x 5 contracts = $385 less comm.
I’m happy.
LJ

Scott Chan

02/14/18 ‐ 11:10am ET February 14, 2018 at 11:10am ET

Dear Larry,

Glad to see you did well!

Chee L.

02/14/18 ‐ 10:38am ET February 14, 2018 at 10:38am ET

Larry, here’s a response on a similar question.
https://www.investingdaily.com/systematic-wealth/alerts/41150/trade-alert-spy-11#comment-118582

I’m keeping an eye out on this to act quickly. I saw both the earlier CY and UUP sell alerts a little bit later after they were posted, and the prices fell quickly… My lessons learned on managing AT trades.

Scott Chan

02/14/18 ‐ 11:16am ET February 14, 2018 at 11:16am ET

Dear Chee,

We recommend signing up for the text alert if possible.

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