Using options to increase returns if gold were to move up

Readers will recall that CCI has maintained a small overall exposure to gold in the portfolio.   At present, this exposure is represented by a  position in the gold miners etf (GDX).  This was last discussed  here.
Also in the past CCI has successfully found ways to take advantage of the high correlation, but different implied volatility in option prices between the gold miners etf (gdx) and gold etf  (gld) to improve returns.   A good example of this concept was initially described in this article


With European news continuing to swirl, the US debt committee coming towards their due date, mideast uncertainty continuing, and gold prices seemingly consolidated CCI wanted to increase exposure to the gold market.  As in the past, CCI has deployed an options strategy to try to increase returns in gold rises without taking on much more risk if the price of gold were to fall.  This strategy can a get a little bit complicated,  but is described in detail at this new article. 

In summary, the strategy is to sell $65 Jan covered calls against one lot of the gdx shares owned and use these proceeds to buy one lot of $180 Jan calls in the gld etf.   As discussed in the article this strategy will provide increased leverage and hence returns without increasing the risk of the portfolio.