Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 18, 2013  Fri 9:21 AM CT

GLD: SEE CHART GET CHAIN FIND STRATEGIES
The SPDR Gold Shares Fund has been climbing for the last two weeks, and a big option trade is looking for another leg higher.

optionMONSTER's Heat Seeker system shows that a trader bought 18,300 June 175 calls for $2.95 and sold 36,600 June 185 calls for the bid price of $1.40 this morning. Open interest at each strike was under 1,000 contracts at the start of the session, so this is a new bullish spread.

This call vertical, also known as a ratio spread because of the differing number of contracts in the two strikes, cost the trader just $0.15 to open. That is the amount at risk if shares remain below $175, while the maximum profit would come with the GLD right around $185 at that June expiration. (See our Education section)

The GLD is up fractionally at $163.63 today, after trading below $160 in the first week of 2013. The exchange-traded fund hit a 52-week high was just above $174 in October, while the all-time high was set in September 2011 at that $185 strike level.
Share this article with your friends


Related Stories

GLD

Midday index, ETF option volumes

October 14, 2014

Total option volume is again strong at 8.6 million so far today, led by the major indexes and ETFs, according to optionMONSTER data systems.

GLD

Large trade looks for rebound in gold

October 6, 2014

The SPDR Gold Fund finished last week at its lowest level in more than four years, but one large trader is looking for a rebound.

GLD

Midday index, ETF option volumes

October 3, 2014

Total option volume is running strong at 6.8 million so far todays, dominated by the big Index and ETFs, optionMONSTER data systems show.

GLD

Midday index, ETF option volumes

September 25, 2014

Total option volume is running well above average at more than 7.2 million so far today, with the primary indexes and ETFs topping the trade, according to optionMONSTER data systems.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER