My Trade: Bearish Put Debit Spread on GDX

Today I entered a bearish vertical spread on GDX (VanEck Gold Miners ETF) using a put debit spread structure. With 74 days to expiration, this setup allows for both opportunity and valuable experience with minimal risk.

Trade Details:

• Strategy: Put Debit Spread (Bearish Vertical)

• Expiration: August 15, 2025 (74 days to go)

• Contracts:

  • Buy 1 GDX 54 Put

  • Sell 1 GDX 53 Put

• Entry Cost (Debit): $52.32 (including commissions & fees)

• Max Profit: $49

• Max Loss: $51

• Break-even Price: $53.49

The Reason Behind the Trade

Currently, GDX is trading around $53.69. From my analysis, I see potential weakness ahead for gold miners. If GDX trends lower over the coming weeks and stays below $53, this trade could reach full profit potential.

But beyond profit, this trade also serves a second purpose: skill development.

This type of vertical spread allows me and hopefully my readers to continue building our experience in trading defined-risk options strategies. With a small capital outlay, I can practice:

• Structuring vertical spreads

• Executing orders

• Managing positions

• Monitoring break-even levels

• Developing trade management discipline

It’s an efficient way to sharpen execution while keeping risk contained. Every repetition builds confidence for larger trades in the future.

Trade Management Plan

• Initial target: GDX breaks below $53.

• If target hit early: I may close for partial gains ahead of expiration.

• If GDX rallies above $54: I’ll monitor but accept full loss if needed — risk was clearly defined upfront.

• Volatility considerations: Any spike in IV could help the trade value sooner than expected.