GDXJ Long Put Spread

Say goodbye to the Year of the Dog and say Happy New Year! It’s the Year of the Pig! You know the old trading adage about bulls, bears, and pigs. Yes, pigs are the most delectable of the three and always wind up on the dinner table, but in the Chinese zodiac the pig is a symbol of wealth. That would seem like an appropriately aspirational symbol for tastytraders. For celebratory purposes, the New Year’s Pig is often draped with gold. Markets, though, have a different take. /GC gold futures have been rallying and /HE hog futures have been falling. Where’s the New Year’s justice in that? If you want to strike a blow for pigs and sic the bears on gold, you might be bearish on GDXJ, the ETF that tracks smaller cap mining companies. If so, the long put vertical that’s short the 32 put and long the 34 put in the March weekly expiration with 45 DTE is a bearish strategy with a 57% prob of making 50% of its max profit before expiry and that generates $.13 of positive daily theta.

This Trade Is

Total P/L
5.8%

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