Traders Flock to GOLD ETF Options (GLD)

Posted in General, Options 
August 14th, 2008

We are seeing a large trading interest in gold options today, via the SPDR Gold Shares (NYSE: GLD).  It seems the inflation and commodity bugs might be watching that huge CPI number from this morning.  The ETF has only traded about 3.5 million shares today (averag 12.5 million shares).  But there have been more than 10,000 options (over 1 million shares fully leveraged) trade in the SEPT08 $85.00 CALLS.  The open interest before today was listed as 8,283 contracts.

We have also seen 2,305 contracts in the AUG08 $80.00 CALLS, where the priuor open interest was 2,304.  That may have just been a close out trade since those options expire tomorrow.  We have also seen some PUT options expiring tomorrow get closed out with more than 6,000 contracts traded in both the $80.00 and $82.00 strike prices.

The “GLD” is meant to track the price of gold bullion.

10:29 AM EST
Jon C. Ogg
August 14, 2008

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