Mike Khouw Sees Unusual Options Activity In Market Vectors Junior Gold Miners ETF
On CNBC's Options Action, Mike Khouw spoke about unusually high options volume in Market Vectors Junior Gold Miners ETF (NYSE: GDXJ). He noticed that options trading volume in the ETF on Wednesday was two times higher than the average daily options volume and most of that volume was in the March 27.5 calls.
Khouw added that the March 27.5 calls were trading at $0.90, which sets a breakeven for the trade at $28.40 or 12.5 percent higher. He noticed that there was one more big trade on Wednesday. Somebody bought 3,000 contracts of the March 24/27 strangle. Khouw explained that this trade is a bet that volatility is going to continue for at least another month.
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