Market Overview

Carter Worth And Mike Khouw's Market Vectors Gold Miners ETF Trade


On CNBC's Options Action, Carter Worth spoke about the gold mining sector and he presented his technical analysis on Market Vectors Gold Miners ETF (NYSE: GDX).

Worth presented several charts of The Philadelphia Gold and Silver Index and he compared its performance with the S&P 500 Index. While the S&P 500 was in the uptrend the Philadelphia Gold and Silver Index traded lower. He also showed a recent move higher in Newmont Mining Corp (NYSE: NEM), which performed well on better-than-expected earnings. Worth added that it is going to continue to outperform other miners.

On the chart of Market Vectors Gold Miners ETF, Worth showed that it is currently trading at its support and he thinks that it is going to bounce off the support. He is a buyer of the stock.

Mike Khouw said that he was impressed by Newmont Mining's earnings because the company posted lower-than-expected costs. Khouw wants to make a bullish bet by buying the June 21 call for $1.85 and sell the June 26 call for $0.45 in Market Vectors Gold Miners ETF. The spread would cost him $1.40 and the breakeven for the trade is at $22.40. The maximal profit is $3.60.


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Posted-In: Carter Worth CNBC Mike Khouw Options ActionMedia ETFs