OptionsHouse

Options Trading News

November 25, 2013  Mon 2:14 AM CT

GLD: SEE CHART GET CHAIN FIND STRATEGIES
A long-term position combined stock and options in the SPDR Gold Shares Fund as it traded near multi-year lows on Friday.

optionMONSTER systems show that the biggest option trade was in the January 2015 expiration. A trader sold 15,000 of the 161 calls for the bid price of $1.52 and bought 15,000 of the 105 puts for $5.

Less than 2 minutes later, 555,000 GLD shares were bought for $120.2165. So it appears that the combination was delta-hedged and therefore not an outright bearish play. (See our Education section)

The GLD was down fractionally to $119.92 on Friday, its worst close since coming off the lows of early July. Shares were up at resistance at $137 in late August.

Total option volume in the GLD reached 127,000 contracts on Friday against the daily average of 72,000.
Share this article with your friends


Related Stories

GLD

Heavy call volume sees rebound in gold

May 24, 2016

The precious metal has pulled back from its recent highs, but bullish traders were piling into several strikes of the SPDR Gold Trust yesterday.

OptionsHouse

Premium Services

Education & Strategy

Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »