Gold Miners ETF (JNUG) – Trade Idea

ETF Description

JNUG provides daily 3x exposure to an index of junior gold and silver mining companies from developed as well as emerging markets. Target index is the MVIS Global Junior Gold Miners Index (MVGDXJTR). This index tracks the performance of foreign and domestic micro-, small- and mid-capitalization companies that generate, or demonstrate the potential to generate, at least 50% of their revenues from, or have at least 50% of their assets related to, gold mining and/or silver mining, hold real property or have mining projects that have the potential to produce at least 50% of the company’s revenue from gold or silver mining when developed, or primarily invest in gold or silver.

Note that leveraged and inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments.

Chart

Option Pricing

  • Implied Volatility (expected price movement) for short-dated options is 99%
  • Realized Volatility (historic stock movement) for short-dated options is 109%
  • Implied Volatility Percentile (IVP) is 64

Trade Idea

Monday’s price action triggered a long volatility signal based on one of our proprietary strategies. If you are bullishly disposed on volatility, you may want to consider the following trade structure:

SideQtyExpStrikeType
Buy18 Nov61Call
Buy18 Nov55Put

Trade Management

20 %
Profit Target

Trade Structure Profit Target.

10 D
Time Stop

Close the Trade Structure after 10 calendar days if the Profit Target has not been reached.

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