GOLD Stocks 3x etfs : NUGT and DUST

[drbubb]

GOLD Stocks 3x etfs : NUGT and DUST
==============



These 3X Etfs are liquid, and highly volatile:

+ NUGT : 3X to the Upside
+ DUST : 3X to the Downside
+ GDX- : 1X : the underlying Index (more or less)

CHARTS
: GDX-- : 5yrs : 2 yrs : 6mos : 2mos : 10days :
: NUGT : 5yrs : 2 yrs : 6mos : 2mos : 10days :
: DUST : 5yrs : 2 yrs : 6mos : 2mos : 10days ::
: GLD-- : 5yrs : 2 yrs : 6mos : 2mos : 10days :
=======

Historical Charts
.
NUGT - 3X Gold Miners Bull ... update
.
.
DUST - - 3X Gold Miners Bear ... update
.


Look at these huge moves ! More than 60% per month.
====
DUST :
Up : Feb.12 : $27.37 / May.12 : $78.66 / +$51.29 : + 187.3 % /3 mos = 62.5%
Up : Sep.12 : $22.04 / Apr. 13 : 119.63 / +$97.59 : + 442.8 % /7 mos = 63.3%
NUGT :
Up : July 12 : $39.60 / Sep.12 : $97.05 / +$57.45 : + 145.1 % /2 mos = 72.5%
.
. ... (more later)

DATABANK
==========
Mo. Endmo:-GDX- : NUGT : DUST : Nu+Du. : -GLD- : gld/gdx
12
. J : 01.31 : 56.46 : 125.5 : ==== : ====== : 169.31 : R-3.00
. F : 02.28 : 57.33 : 129.9 : ==== : ====== : 173.49 : R-3.03
.M : 03.30 : 49.54 : 81.80 : 42.00 : 123.80 : 162.12 : R-3.27
.A : 04.30 : 46.39 : 65.60 : 48.62 : 114.22 : 161.88 : R-3.49
.M : 05.31 : 43.78 : 52.90 : 53.82 : 106.72 : 151.62 : R-3.46
. J : 06.29 : 44.77 : 54.60 : 46.79 : 101.39 : 155.19 : R-3.65
.Jl : 07.31 : 42.83 : 47.00 : 50.81 : $97.81 : 156.49 : R-3.65
. A : 08.31 : 47.94 : 64.95 : 34.87 : $99.82 : 164.22 : R-3.43
.S : 09.28 : 53.67 : 88.60 : 23.71 : 112.31 : 171.89 : R-3.20
.O : 10.31 : 52.90 : 82.77 : 23.74 : 106.51 : 166.83 : R-3.15
.N : 11.30 : 47.55 : 58.60 : 31.03 : $89.63 : 166.05 : R-3.49
.D : 12.31 : 46.39 : 54.85 : 31.51 : $86.36 : 162.02 : R-3.49

13. Endmo:-GDX- : NUGT : DUST : Nu+Du. : -GLD- : gld/gdx
. J : 01.31 : 41.62 : 38.85 : 41.87 : $80.72 : 161.20 : R-3.87
. F : 02.28 : 37.40 : 27.60 : 55.35 : $83.95 : 153.00 : R-4.09
.M : 03.28 : 37.85 : 28.10 : 51.19 : $79.29 : 154.47 : R-4.08
. A : 04.30 : 30.36 : 12.94 : 82.29 : $95.23 : 142.77 : R-4.70
.M : 05.31 : 29.50 : 11.06 : 79.12 : $90.18 : 133.92 : R-4.54
. J :
.Jl :
===
Link to here :: http://tinyurl.com/GEI-NUGT

 

[drbubb]

NUGT Options : A First look : Big Gain potential - 200%+ Returns ?

 

NUGT at $11.95 on 2 May

 

Strike: Bid- Offer :: Mid.Pr / TimeV.

May : exp. 05/17 = 15 days ===== / SQRT(d): 3.87

$12 C: $1.10-1.15 : $1.15 / $1.15 : $0.297 :

$11c : $1.60-1.70 : $1.65 / $0.70 :

$10c : $2.30-2.45 : $2.40 / $0.45 :

 

Dec. : exp. 12/20 = 218 days ===== / SQRT(d): 14.76

$14c : $3.00-3.20 : $3.10 / $3.10 :

$12 C: $3.70-3.80 : $3.75 / $3.75 : $0.254 :

$11c : $4.10-4.20 : $4.15 / $3.20 :

$10c : $4.50-4.70 : $4.60 / $2.65 :

$ 8.c : $5.50-5.70 : $5.60 / $1.65 :

 

Take $0.254 x SQRT (365d) = $0.254 x 19.10 = $4.85

 

As a % of $11.95 = 40.5% /.4 = 101.5% Implied Volatility

 

WATCH that Dec. $8 Call, since only a $1.65 move (13.8%) would put it at the money

 

Returns on the Dec.Calls, if NUGT goes up 100% to $24.00:

 

$14c : $3.10 / $10.00 : 3.226 : +222.6%

$12 C: $3.75 / $12.00 : 3.200 : +220.0%

$11c : $4.15 / $13.00 : 3.133 : +213.3%

$10c : $4.60 / $14.00 : 3.043 : +204.3%

$ 8.c : $5.60 / $16.00 : 2.857 : +185.7%

=====

 

The $8 Call should lose little value over the next few months, if Gold stocks trade sideways

 

Over a 200% return on a 100% gain in NUGT - that's maybe 30-35% in GDX (which is very possible)

[drbubb]

Estimates of One Day GAINS / in NUGT Calls

 

... on a Day when NUGT shot up by 16.20% / update

 

NUGT - Early trading on Thu. morning

 

 

NUGT - Daily Trading / update

 

 

Wed. Close: $12.84 +$1.79 / +16.20%

 

=== May.13--- / Sep.13---- / Dec.13--- :

UL : $12.84--- :

$8 : ------------ / 5.60-5.80 / 6.10-6.40 : 6.25 +1.10/ +21.4%

10 : ------------ / 4.30-4.60 / 5.00-5.30 : 5.15 +0.95/ +22.6%

11 : 2.00-2.15 / 3.80-4.00 / 4.40-4.80 : 4.60 +0.70/ +17.9%

12 : 1.25-1.40 / 3.30-3.60 :/4.10-4.30 : 4.20 +0.50/ +13.5%

 

Tues. Low : $10.83 ($2.01 lower)

 

$8 : ------------ / 4.30-4.60 / 5.00-5.30 : 5.15

10 : ------------ / 3.30-3.60 :/4.10-4.30 : 4.20

12 : ------------ / 2.60-2.75 :/3.40-3.60 : 3.70

 

These percentage gains may be wrong, since the results seem counter-intuitive

[drbubb]

RECENT RANGE of NUGT Call Options

 

Dec-$8 call ... NUGT: Dc$8c / GDX: Dc$24c : Dc$25c / DUST

 

Sep.-$8 call ... update

 

From 23-Apr to 7-May, NUGT was in the range of $xx to $xx

(and the Dec.$8 call was at $4.70 to $6.75 - that's xx% to xx%)

 

Date- : NUGT : Dc$8C : Pct./N : Sp$8C : Pct./N : Diff%

4/23 : $10.70 : $ 4.70 : 43.9% : $ 4.00 : 37.4% : 6.5%

4/25 : $13.29 : $ 6.80 : 51.2% : $ 6.20 : 46.7% : 4.5%

5/07 : $12.84 : $ 6.25 : 48.7% : $ 5.70 : 44.4% : 4.3%

[drbubb]

MORE DATA : Comparison of Dec Calls

 

What's cheaper: Calls on GDX (Dec.$24c, or Dec.$25c) or Calls on NUGT (Dec.$8c)

I reckon the Dec.$8 calls are a far better buy. They have fantastic leverage to Gold stock price rises.

 

Date: GDX- NUGT %-gdx D24c D25c D$8c

====

. 4.22 28.97 11.46 39.56% 6.45 5.75 5.25

. 4.23 28.32 10.70 37.78% 5.95 5.25 4.70

. 4.24 30.23 12.85 42.51% 7.25 5.80 6.30

. 4.25 30.58 13.29 43.46% 7.70 6.90 6.75

. 4.26 29.46 11.90 40.39% 6.80 6.05 5.65

. 4.29 29.91 12.39 41.42% 7.00 6.30 5.95

. 4.30 30.36 12.94 42.62% 7.30 6.60 6.35

. 5.01 29.65 12.09 40.78% 6.85 6.10 5.70

. 5.02 29.63 11.95 40.33% 6.80 6.00 5.55

. 5.03 29.69 11.94 40.22% 6.85 6.00 5.60

. 5.06 29.73 12.11 40.73% 6.80 6.05 5.60

. 5.07 28.85 11.05 38.30% 6.05 5.40 4.80

. 5.08 30.44 12.84 42.18% 7.40 6.60 6.25

. 5.09 29.85 12.22 40.94% 6.95 6.22 5.80

. 5.10 29.81 12.06 40.46% 6.87 6.18 5.55

 

=====

Note: NUGT-Dec.$8 Calls, trade at and average of the Dec.$25c

[drbubb]

MANY Gold related charts on DrB;s Diary today.

 

Here's one of them - featuring NUGT

 

Finally, here's another comparison of two highly geared GOLD-related etfs,,,

 

NUGT (3x Gold share index) versus UGLD (3x Gold) ... update-10 days ... 6mos-Daily

 

 

NUGT vs UGLD Daily ... update : NO BUY Cross yet !

 

[drbubb]

Updated by a few days, but with different channels...

 

NUGT (3x Gold Miners) vs UGLD (3x Gold) ... update : NUGT : UGLD

 

 

NUGT rose 110%, and then dropped by 90%, 80% from its original starting point.

 

That's Volatility !

 

UGLD is the 3X Bull etf on Gold - but NUGT is more volatile than that

[drbubb]

More interesting developments ...

. . .

George Soros, John Paulson, and Steve Cohen, who in aggregate control over $60 billion dollars, have been aggressively buying the most speculative vehicles associated with gold: call options on gold mining stocks.

 

Bottom Line: While gold and gold mining equities in particular have become the world’s most hated investment, three of the top hedge fund managers of our generation are not only holding firm their previous gold holdings—but they are quietly accumulating tens of millions of dollars in call options on gold mining stocks.

 

http://bullmarketthi...ions-on-miners/

 

"Do as we Say, Not as we Do!"

I wonder if they are using them to Hedge shorts - and maybe even paper Gold shorts

 

Personally, I have been buying Call on NUGT - the 3X Bull etf on Gold shares:

[drbubb]

The Drop in NUGT has been much more gentle this time

 

NUGT (3x Gold Miners etf) ... update

 

[frizzers]

"Do as we Say, Not as we Do!"

I wonder if they are using them to Hedge shorts - and maybe even paper Gold shorts

 

Personally, I have been buying Call on NUGT - the 3X Bull etf on Gold shares:

 

Yes, I've heard a rumour that it was Paulson who dumped 300 tonnes on April 12

[drbubb]

Yes, I've heard a rumour that it was Paulson who dumped 300 tonnes on April 12

 

Calls on Gold shares might be his way of keeping a very big toe in the Golden water

[drbubb]

(For the record here - let's see where NUGT is, if Gold hits $1,900): .

.

.

BUYING GOLD SHARES instead of Gold

- Suppose the Ratio (GLD-to-GDX) returns to 3.80...

 

As PD and others have pointed out, the Ratio of GLD-to-GDX

seems to be breaking its uptrend (to over 5.00) as Gold come off its low

 

3-yr-chart

1-yr-chart

 

If Gold returns to $1900, and GLD to $185, while the Ratio goes back to 3.80,

what will returns look like ?

 

PriceLevel: - Gold : - GLD- : Ratio : - GDX : - NUGT : Ratio

New High : $1,900 : $184.40 : 3.80 : $48.53 : $26.77 : 1.81

Current-- : $1,360 : $131.94 : 4.77 : $27.67 : $ 9.28 : 2.98

Change - : $0,540 : $ 52.46 : 10.3 : $20.86 : $17.49 : 1.19

Pct. Chg. : +39.7% : +39.8% : === : +75.4% +188.5%: 2.50

 

The indicated +75.4% rise is almost 2X (actually, 1.89 x) the 39.7% rise in Gold.

 

Effectively, each $100 invested in GDX would then do the job of $189 invested in GLD/Gold.

And NUGT would perform far better.

[drbubb]

Paul Craig Roberts - on Soros's Gold share holdings

 

You know that gold bear market that the financial press keeps touting? The one George Soros keeps

proclaiming? Well, it is not there. The gold bear market is disinformation that is helping elites acquire the

Certainly, as the 13-F release issued by the Securities and Exchange

Commission on May 15 proves. George Soros has significantly increased his gold holding by purchasing

$25.2 million of call options on the GDXJ Junior Gold Miners Index.

 

In addition the Soros Fund maintains a $32 million stake in individual mines; added 1.1 million shares of

GDX (a gold miners ETF) to its holdings which now stand at 2,666,000 shares valued at $70,400,000; has

1,100,000 shares in GDXJ valued at $11,506,000; and 530,000 shares in the GLD gold fund valued at

$69,467,000. [values as of May 17]

 

The 13-F release shows the Soros Fund with $239,200,000 in gold investments. If this is bearish

sentiment, what would it take to be bullish?

 

The misinformation that Soros had sold his gold holdings came from misinterpreting the reason Soros’

holdings in the GLD gold trust declined. Soros did not sell the shares; he redeemed the paper claims for

physical gold. Watching the gold ETFs, such as GLD, being looted by banksters, Soros cashed in some of

his own paper gold for the real stuff.

 

The giveaway that Soros is extremely bullish on gold comes not only from his extensive holdings, but

also from his $25.2 million call option on junior gold stocks. This is a highly leveraged bet on the weakest

gold mines.

[electroweak]

Dr B,

 

I have stuck with GDXJ, rather than NUGT.

I levered the December options 8x, (yes 8X!!) and it has worked since last week. Today I am feeling a bit rich. I feel this might be the start of a big move up, so I think I will stick with it.

Greed, not one of the best emotions I like to temper/cope with!

[drbubb]

NUGT is certainly doing its job - as designed !

 

A very nice move in Gold and Gold related equities today

 

GLD : $136.87 + $2.04 / + 1.50%

GDX : $30.00 + $1.50 / + 5.26%

ASA : $14.63 + $0.56 / + 3.98%

Nugt : $11.81 + $1.68 / +16.50%

Gdxj : $12.34 + $0.76 / + 6.50%

 

Look at that NUGT : up 16.50% ! (more than 10X the pct. move in Gold.)

 

It has moved $1.68 vs. the $2.04 move in GLD.

But the under lying value of NUGT is less than 1/10th the underlying value of GLD

 

NUGT has left behind a big gap ,,, update

 

 

As we know, they usually get filled,

And so, I have sold some Jan, $12 calls for around $3.50, to lock in some profits

[drbubb]

In response to this very nice CHART from PD, i made the post shown below

 

And now the moment you've all been waiting for;

 

 

That's the turn I've been looking for, and therefore time to strongly consider buying gold stocks, it's taken nearly a month longer than I originally thought but it is clearly here NOW. I've got a bonus coming through at month end so hopefully Gold Stocks don't rise too much between now and then.

 

Buy some calls ! (using less money)

 

I suggest NUGT, the 3X etf on Gold shares

 

I have had some great success in trading them in recent days.

 

My Jan.$7 calls are up from $3.50 to yesterday's close of $5.80-6.00,

as NUGT closed at $11.45, after hitting $12.42 earlier this week.

 

I sold some of my Jan.$8 calls recently at $6.00, and they closed at $5.20-5.40 yesterday.

I may soon buy more, or may focus on a closer strike, since the trend now looks up,

and we may not need to wait until Jan to see a good gain.

[drbubb]

DATA BANK : from 06/06 ...

.

GLD : 136.53 +$1.01 / +0.75% : 9.70m

GDX : $30.30 +$0.37 / +1.25% : 17.92m ++ ($7.40, 6.65 / $7.50, 6.75)

ASA : $14.45 +$0.00 / +0.00% : 66,876 + + + ($2.40)

gdxj : $12.50 +$0.28 / +2.28% : 3.11m

nugt : $12.06 +$0.49 / +4.24% : 12.40m ++ ($5.60 / $5.75, $6.30, ??? )

SLV : $21.93 +$0.15 / +0.69% : 10.23m

.

NUGT -- 10days : 6mos : 2mos

.

.

[drbubb]

For the Record here

 

Encouraging "Bright Sparks" ?

.

Finally, a bullish move on a Friday (for precious metals equities),

After a downer of a week.

.

The WEEK's MOVE -- : === and on Friday alone =====

Sym. : 06/ 21 : change / 06/ 28 : +/-chg. : % Chg. : volume

===

GLD : 125.05 : +0.00% / 119.11 : +3.17 : +2.73% : 32.6 mn

GDX: $24.90 : +0.00% / $24.49 : +1.70 : +7.46% : 67.8 mn : near record

Gdxj : $ 9.50 : + 0.00% / $ 9.16 : + 0.71 : +8.40% : 9.47 mn

ASA : $12.77 : + 0.00% / $12.70 : +0.70 : +5.83% : 149,751

Nugt: $ 6.32 : + 00.0% / $ 5.86 : +1.02 : +21.07% : 50.4 mn : a Record !

CU - : $20.57 : +00.0% / $20.16 : +0.10 : +0.54% : 9,815

SLV : $19.39 : +0.00% / $18.97 : +1.08 : +6.04% : 27.1 mn

SIL- : $11.73 : +0.00% / $11.72 : +0.94 : +8.72% : 335,790

DBA : $25.30 : +0.00% / $24.90 : - 0.35 : - 1.39% : 1.17 mn

OilB : $62.11 : +0.00% / $63.29 : - 0.26 : - 0.40% : 202,552

SPY : 159.07 : +0.00 % / 160.42 : - 0.66 : -0.41% : 141. mn

TLT- : 108.40 : +0.00% / 110.44 : +0.75 : +0.68% : 11.6 mn

DXY : $82.31 : +0.00% / $83.18 : +0.22 : +0.27%

===

Wow. Look at that Huge volume on NUGT !

Over 50mn shares. That's a new record.

.

NUGT / 3x Bull etf on Gold Miners ... 6mos : 12 mos : 2-yrs

.

... 2 years ... ... .... .... ... ... ... ... ... ...

.

DUST / 3x Bear etf on Gold Miners ... 6mos : 12 mos

.

.

 

... and the longer term chart ... NUGT-update

 

[drbubb]

Here's a measure of the "slippage"

 

REWIND - To before the Drop

Comparing yesterday's closing levels, with the level before the June GAP down in Gold

 

(see Gap-#3, in chart below)

 

 

MOVE since GAP ---- : === and on Monday alone =====

Sym. : 06/ 19 : change / 07/ 22 : +/-chg. : % Chg. : volume

===

GLD : 130.59 : - 1.34% / 128.84 : +3.73 : + 2.98% : 10.7 mn

GDX : $26.51 : +3.51% / $27.44 : +1.58 : + 6.11% : 41.3 mn

Gdxj : $41.32 : +3.51% / $42.77 : +3.49 : + 8.88% : 1.80 mn

ASA : $13.61 : +0.73% / $13.71 : +0.67 : + 5.14% : 88,561

Nugt : $ 8.04 : - 2.86% / $ 7.81 : +1.22 : +18.49% : 32.8 mn

. . .

What was AHEAD over this period of time: SIL, SPY, GDX, GDXJ

Lagging BEHIND, was mainly: CU, SLV, TLT, NUGT, DBA

. . .

Note: there was a 6.3% slippage in NUGT versus GDX

....... - and SIL (Silver shares) were a big leader, while SLV was a laggard

 

UPDATED - on Tuesday's action:

 

Sym. : 06/ 19 : change / 07/ 23 : +/-chg. : % Chg. : volume

===

GLD : 130.59 :-0.007% / 129.71 : +0.87 : + 0.68% : 8.76 mn

GDX : $26.51 : +6.94% / $28.35 : +0.91 : + 3.32% : 37.1 mn

Ratio: r- 4.93 : - 7.10% / r- 4.58 : GLD/GDX

Gdxj : $41.32 : +7.89% / $44.58 : +1.81 : + 4.23% : 1.60 mn

ASA : $13.61 : +2.65% / $13.97 : +0.26 : + 1.90% : 70,900

Nugt : $ 8.04 : +6.47% / $ 8.56 : +0.75 : + 9.60% : 34.8 mn

Ratio: r16.24 : - 6.71% / r15.15 : GLD

Ratio: r- 3.30 : +0.30% / r- 3.31 : GDX

===

NUGT is fast catching up to GDX

[drbubb]

NUGT - A nice +86% rally from the Low ... 1-year : 6mos : 3mos : 10days

 

 

REBOUND - from the Low:

 

Sym. : 06/ 27 : Change / 07/ 23 : +/-chg. : % Chg. : volume

===

GLD : 114.68 :+13.11% / 129.71 : +0.87 : + 0.68% : 8.76 mn

GDX: $22.21 : +27.65% / $28.35 : +0.91 : + 3.32% : 37.1 mn

Ratio: r- 5.16 : -11.24% / r- 4.58 : GLD/GDX

Nugt: $ 4.60 : +86.09% / $ 8.56 : +0.75 : + 9.60% : 34.8 mn

Ratio: r24.93 : -39.23% / r15.15 : GLD

Ratio: r- 4.83 : -31.47% / r- 3.31 : GDX

. . .

Dust: 162.20 : -58.58% / $67.19 : - 6.87 : - 9.28% : 1.75 mn

drop : $59.39 : -25.26% / $44.39 : below $174.04 High of 2012

Ratio: r-2.73 : -44.69% / r-1.51 : Drop / DUST

 

DUST ... xx yrs : 6mos : 3mos : 10days

[TrueNorth]

"NUGT - A nice +86% rally from the Low"

 

holy schmokes, that is impressive!

[drbubb]

NUGT outperforms GDXJ when Moves are Big !

 

Latest:

GDXJ : $36.94 +0.56 +1.54% : 1.27mn-Noon

NUGT : $32.53 +1.42 +4.56% : 1.56mn
GDX - : $23.38 +0.35 +1.50% : 9.11mn

ASA - : $13.29 +0.19 +1.45% : 34,027
IAG - : $ 3.95 +0.18 +4.77% : 3.72mn
VGZ - : $0.421 +.028 +7.01% : 220,517

GDXJ -vs-NUGT : Chart ... update

 

Call Options

Last $32.53

Nugt-Ja-'15 :
$25 : 10.60 : 10.20-11.00 :
$30 : $8.25 : $7.90- $8.60 :
$35 : $6.50 :
$40 : $5.10 :
$45 : $4.05 :
$50 : $3.10 :
$70 : $1.52 :
$90 : $0.77 :

Jan.$25C on NUGT .... update

Jan.$30C on NUGT .... update

 

Jan.$40C on NUGT .... update

[drbubb]

SQRT (.583 of a year): 76.4% To Jan.Options

====
NUGT-$41.51-Jan $9.56 (23.1%) > (30.2%) > 75.6%
$40 : 9.60 -10.50: 10.05 x 84.9%: $8.53
$50 : 6.60 -$7.00: $6.80 x 15.1%: $1.03
$60 : 4.50 -$4.90: $4.70
UGL--$46.86-Jan: $4.48 (9.56%) > (12.5%) > 31.3%
$40 : 7.50 -$8.80: $8.15 x 31.4%: $2.56
$50 : 1.70 -$3.90: $2.80 x 68.6%: $1.92
GDXJ-$41.66-Jan: $5.39 (12.9%) > (16.9%) > 42.2%
$40 : 5.90 -$6.20: $6.05 x 81.3%: $4.92
$50 : 2.50 -$2.55: $2.52 x 18.7%: $0.47
================
CDNX : +0.7%
SLV - $19.43
AGQ -$65.95

 

UPDATE:

NUGT-$43.42-Jan: $9.96 (22.9%)
$40 : 11.00-11.5: 11.25 x 65.5%: $7.37
$45 : $8.80-$9.50: $9.15
$50 : $7.10-$7.90: $7.50 x 34.5%: $2.59
CLOSE :
NUGT-$44.63-Jan: 10.40 (23.3%) /(.764 *.40) = 76.24%
$40 : 12.00-12.5: 12.25 x 53.7%: $6.58
$45 : $9.80-10.4: 10.10
$50 : $7.90-$8.60: $8.25 x 46.3%: $3.82

CLOSE :
GDX -$26.09-Jan: $2.21 (8.47%) /(.764 *.40) = 27.71%
$25 : $2.69-$2.95:
$26 : $2.19-$2.30: $2.25 x 91.0%: $2.05
$27 : $1.75-$1.85: $1.80 x 09.0%: $0.16

[drbubb]

The Magic of Nuggets (NUGT, the 3X etf for Gold shares)

 

NUGT has had a great run in the last few days ... update

 

 

As shown over the last 10 Days, below: (on a percentage basis):

 

+ NUGT returned 3.44x the gain of GDX, and

+ NUGT returned 9.31x the gain of Gold

 

As a 3X etf, how could if return more than 3 times the gain in GDX?

 

Essentially, it is because "profits are reinvested", increasing gearing

 

In detail:

At the $28.50 Low, there was 3x that (=$ 85.50) invested in Gold shares; that's 3.83 GDX shares at $22.34.
At the $44.63 High, there was 3x that (=$133.89) invested in Gold shares; that's 5.13 GDX shares at $26.10.

The 34% increase in the number of GDX shares backing the NUGT, represents a reinvestment of profits,
gained by NUGT through the aggressive 3-times gearing.

 

The good news is that, a holder of NUGT is only at risk on the money invested in NUGT, not the higher gearing working on his/her behalf.

The bad news is that if GDX chops up and down the NUGT will lose value.

 

===============

Over the last 10 Days:

 

LOWS -10d : 6/19-H : +change : %-Chg. :
GDX: $22.34 : $26.10 : +$ 3.67 : +16.43%
nugt: $28.50 : $44.63 : +$16.13: +56.60% (x 3.44)
VGZ: $.3705 : $.5495 : +$.1790: +48.31%
GLD: 119.94 : 127.23 : +$ 7.29 : + 6.08%
====
NUGT : 3.44x %gain of GDX / 9.31x %gain of GLD

[drbubb]

If that 57% return on NUGT is not sexy enough for you, then Use Call Options on NUGT

 

Here's the NUGT-Jan.$25c ... update ...