Alan Knuckman's Market Vectors Gold Miners ETF Trade

Alan Knuckman of Bulls-Eye Options suggested on Bloomberg Markets a bullish options trade in Market Vectors Gold Miners ETF GDX.

He is bullish on gold because it held well on a day when the U.S. dollar traded higher and he wants to buy the January 20 call for $4.25. The call option is almost $3 in the money and the break even for the trade is at $24.25 or 5.5 percent higher. He thinks that Market Vectors Gold Miners ETF is going to recover to $28 and if that happens at the January expiration, his trade is going to make almost 100 percent return.