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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.
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Options Academy: At the Break

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

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