All the dirty, low down, scary stuff happens after dark. It’s why after-hours and late night research is my favorite time to go hunting.

We detected unusual dark pool activities in GDX stock on December 11, 2019.

Unusually large block orders were detected coming off dark pools on December 11, 2019.

The dark pool activity looks like buy orders to me.

GDX stock with a volume candle chart and huge dark pool trades at 1:13 PM and 1:48 PM Pacific time.

Notice how GDX price responded to the dark pool prints: it faded up. I’m just guessing here but it does follow the seasonally strong time of year for gold which begins mid-December and goes through February.

On December 11, 2019, TheFly said that a gold bull layed out $2.4M for 100-day upside vertical call spread. A vertical call bull spread is purchasing a call option, and simultaneously selling another call option (on the same underlying asset) with the same expiration date but a higher strike price. Since this is a debit spread, the maximum loss is restricted to the net premium paid for the position, while the maximum profit is equal to the difference in the strike prices of the calls less the net premium paid to put on the position.

TheFly says the unnamed trader paid 53c for 45K March 30/33 call spreads on NYSE-Arca this afternoon as the underlying ETF traded at $27.81. Both legs open, with the high strike currently 19% out of the money. If GDX were to reach that strike by expiry, the position would be worth $13.5M (not bad for a $2.4M spend). All-time high for GDX was set in September, just below $31, near the same time spot gold touched YTD highs near $1551/oz, about 5% above today’s spot gold price.

finviz dynamic chart for  gdx
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