Gold ETF attracts huge call spread
Chris McKhann | email@example.com
The GLD saw 288,000 options change hands, about twice its daily average. Of that volume, 200,000 were calls.
A trader bought 20,000 September 165 calls, including a large block of 13,000 that went for $3.14, according to optionMONSTER's systems. This was done against open interest of 20,694, so it could have been an opening or closing transaction. At the same time, the trader sold 20,000 September 175 calls for $1.62.
Depending on whether the September 165 calls were opening or closing trades, this could have been a new bullish call spread or the roll of a short call to the higher strike. The latter is less likely, given the current stock price. (See our Education section)
The GLD finished yesterday's session at $151.91, gaining 0.6 percent on the day. The exchange-traded fund has fallen from $173 in the last three months and is just off a support level that has been in place all year.