“And whichever way GDX options traders choose to go, now’s a prime time to buy premium on the fund’s short-term contracts. Despite the upcoming Fed meeting and an Aug. 4 jobs report, GDX’s Schaeffer’s Volatility Index (SVI) of 26% ranks in the 8th annual percentile, meaning low volatility expectations are currently priced into its near-term options,” notes Schaeffer’s.
Popular leveraged gold miners ETFs include the Direxion Daily Junior Gold Miners Index Bull 3x Shares (NYSEArca:JNUG), the triple-leveraged answer to the popular VanEck Vectors Gold Miners ETF (NYSEArca:GDXJ). The Direxion Daily Gold Miners Bull 3X Shares (NYSEArca:NUGT) is JNUG’s large-cap counterpart.
GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies. Nevertheless, gold assets may have further room to fall if the U.S. dollar and real bond yields continue to rise.
For more information on the gold market, visit our gold category.