Trader expects limited downside in gold
Chris McKhann | email@example.com
The GLD rose fractionally yesterday to close at $157.27. The exchange-traded fund found support around $150 at the end of May but is still in a downtrend since hitting $174 in late February.
A trader sold 10,000 December 130 puts in a single print for the bid price of $2.30, according to optionMONSTER's systems. The volume was twice the open interest at the beginning of the day, so this is a new position.
The put seller will profit with the GLD above $150 come the December expiration. Below that level, the trader would effectively be long the stock. (See our Education section)