Options Traders Chase Gold Upside With 8,000 GLD Calls as Spot Nears $4,430
Updated
Updated · CNBC · Aug 18
Options Traders Chase Gold Upside With 8,000 GLD Calls as Spot Nears $4,430
3 articles · Updated · CNBC · Aug 18
Summary
8,000 November 460 calls on the SPDR Gold Trust were bought for about $5.55, highlighting fresh demand for upside exposure as GLD closed Monday at $405.49.
One-month implied volatility has stayed near recent lows even as gold rallies, Susquehanna said, letting investors add bullish positions without paying up for volatility.
Gold option skew has swung away from downside puts toward upside calls, reversing the earlier summer pattern, though a recent 25,000 September 350-put purchase showed cheap hedges still attract buyers.
Gold funds are seeing their strongest inflows since January, reinforcing the bullish setup as spot gold rose 0.3% to $4,428.43 and December futures settled at $4,482.40.