Options volume for GDX surpassed 90,000 in the top two contracts
Market volatility stemming from the presidential election, geopolitical conflicts, interest rates, as well as dollar and Treasury yield fluctuations have sent gold prices on a wild ride this year. While the yellow metal was last seen lower amid a surge in the dollar index, it wasn't long ago it was stringing record highs, as traders sought a safe haven from instability.
VanEck Gold Miners ETF (GDX) was last seen 1.3% lower to trade at $35.63, but still sports a 15.1% year-to-date lead after hitting an Oct. 22, four-year high of $44.29. Though the exchange-traded fund (ETF) is on track for its fourth-straight loss, it has maintained its popularity with options traders.
At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GDX's 50-day call/put volume ratio of 5.55 sits higher than 82% of readings from the past 12 months, indicating calls are getting picked up at a faster-than-usual rate.
Just yesterday, volume at the January, 2025 42- and 47-strike calls -- the top two options contracts -- totaled 91,033. Positions were being opened at the March 21, 2025 38 call, which points to long-term optimism. It's also worth noting that after GDX's 10% quarterly drawdown, the ETF now sports a 14-Day Relative Strength Index (RSI) of 16.1, deep in "oversold" territory and indicating a short-term bounce could be imminent.