Paper bought 13,000 GDX March 14 calls for 0.89 & sold 13,000 GDX Mar 15 calls at 0.49.
Yesterday, Market Vectors Gold Miners was trading at 14.20 with an IV30 of 42.42 and an HV10 of 46.53.? GDX, which has open interest of 985k and an ADV of 58,500, saw a trader buy the March 14/15 call spread 13,000 times.? A trader bought 13,000 of the March 14 calls paying .89 and sold the March 15 calls at .49 13,000 times.? In total he or she paid .38 for the spread.? At the time the stock was 13.85.
This is a clear play on GDX moving higher.? The trader thinks that GDX will move toward 15 by the end of March expiration.? The payout is almost 1.75 to one thus the trader must like the risk reward.? The break even on the trade is 14.38.
This trade should be considered bullish the underlying and mildly bullish volatility.