Finally a decent drop in the market today. I have been questioning the absurd rally we have seen over the past 7 weeks as it made no sense.
Will the market continue going down?
Nobody knows. I believe it will but I am just speculating like everyone else. As an options trader, I am already seeing more and more stocks that seem ripe for put options.
When the stock price of a very solid company falls to a certain level than normally it's fairly safe to sell put option against it.
So what's my trade for today?
#GDX (#GoldMinersETF). I have been eyeing this ETF recently and today felt like a great day to finally sell a put option against it. Unfortunately due to the time difference I was not able to take advantage of the price falling below $25 at market open but I still believe that the $24 strike price is pretty solid.