Trader Places $58 Million Bearish GLD Bet as Gold Rallies 15% in Best Month Since 2008
Updated
Updated · CNBC · Aug 24
Trader Places $58 Million Bearish GLD Bet as Gold Rallies 15% in Best Month Since 2008
3 articles · Updated · CNBC · Aug 24
Summary
Almost 116,000 Sep. 18 GLD 420 calls were sold and the same number of 430 calls bought, creating a $58 million net credit that effectively bets the ETF falls below a $425 breakeven.
GLD was trading near $427, making the spread a short-term bearish call even though the 420-strike leg was already in the money and gold is on pace for its strongest month since 2008.
Nigam Arora said the setup points to a likely pullback, citing negative smart-money flows and about $60 million of net outflows from GLD on Monday.
That trade cuts against broader options positioning: traders bought more than 37,000 GLD calls versus fewer than 20,000 puts, and 13 of the top 15 contracts by volume were calls.
The wager lands before Wednesday's PCE inflation data and the Jackson Hole symposium, with GLD volume running nearly five times its 30-day average as gold rises despite higher Treasury yields and real rates.