Long-term hedged play in gold ETF
A long-term position combined stock and options in the SPDR Gold Shares Fund as it traded near multi-year lows on Friday.
optionMONSTER systems show that the biggest option trade was in the January 2015 expiration. A trader sold 15,000 of the 161 calls for the bid price of $1.52 and bought 15,000 of the 105 puts for $5.
Less than 2 minutes later, 555,000 GLD shares were bought for $120.2165. So it appears that the combination was delta-hedged and therefore not an outright bearish play. (See our Education section)
The GLD was down fractionally to $119.92 on Friday, its worst close since coming off the lows of early July. Shares were up at resistance at $137 in late August.
Total option volume in the GLD reached 127,000 contracts on Friday against the daily average of 72,000.
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