Bulls dig for more in $GDX

Option traders have doubled their money on upside positions in the VanEck Vectors Gold Miners Fund (GDX).

On June 26, Market Rebellion’s proprietary programs flagged the purchase of 5,100 November $30 calls for $0.67 and $0.68 as part of a spread with shares at $25.64.

Those calls traded for as much as $1.37 so far today, more than twice their purchase prices. The stock rose 15.25% in the same time period, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

GDX is up 0.65% to $29.35 this afternoon. The exchange-traded fund has risen with the price of gold as investors have sought a safe-haven from market volatility.