SPDR Gold Trust ETF (GLD) Option Bull Bets $4.6 Million

One SPDR Gold Trust ETF (GLD) speculator bought to open a 15,000-contract block of December 130 calls

Jun 22, 2016 at 2:56 PM
facebook X logo linkedin


SPDR Gold Trust ETF (GLD) has been on a tear in 2016, up more than 19%. In fact, the exchange-traded fund (ETF) hit a 52-week peak of $125.67 last Thursday, after the Fed's latest monetary policy decision. Although the shares of GLD have lost some steam this week as "Brexit" anxiety eased -- and were last seen fractionally higher at $120.89 -- one options trader today bet big on even higher highs for the safe-have asset over the next six months.

According to Trade-Alert, a massive 15,000-contract block of December 130 calls was bought to open on GLD earlier for roughly $4.6 million (number of contracts * $3.08 premium paid * 100 shares per contract). This also represents the maximum risk on the trade, should the calls expire out of the money at the close on Friday, Dec. 16. Profit, meanwhile, will accumulate on a move north of breakeven at $133.08 (strike plus premium paid) -- territory not charted since March 2014.

Widening the sentiment scope, options traders have been quick to initiate long calls relative to puts in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 170,445 calls have been bought to open over the past two weeks, compared to 66,387 puts. Plus, the resultant call/put volume ratio of 2.57 ranks in the 71st annual percentile.

Echoing this call-heavy backdrop is GLD's Schaeffer's put/call open interest ratio (SOIR) of 0.31. Not only does this show that calls more than triple puts among options expiring in three months or less, but it rests lower than 91% of all comparable readings taken in the past year. Simply stated, short-term speculators are more call-skewed than usual toward GLD.

More broadly speaking, there are currently nearly 2.9 million SPDR Gold Trust ETF (GLD) calls outstanding -- in the 89th annual percentile. For the comparison's sake, put open interest accounts for just 868,582 options, in the middling 54th annual percentile.

Schaeffer's Expiration Week Countdown subscribers just made 100% GAINS on SPDR Gold Trust (GLD) puts! Sign up now for a trial subscription.
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI