Gold has trade down beginning of the year. With a small bounce back this week, CCI rolled the short put position in GDX from the Jan. $47 strike to the Feb $44 strike. The closure of the Jan $47 put essentially closed the January cycle for this approach at a 3.9% loss. On a relative basis that was better than 6% loss for the gold etf over the same period. That of course is one of the goals of this approach. "Lose less if gold does not spike"
At the same time, the proceeds of the GDX Feb $44 puts were used to obtain a GLD $162 Feb. Call
Specific holdings as of now are:
- Short 3 March $45 GDX puts for every 1 long March $170 call
- Short 3 Feb $44 GDX puts for every 1 long Feb $162 call
- Long Jan $175 call which is assumed will expire worthless on Friday.