Call options on the Gold Trust (GLD) are actively traded after the metal erased early losses and GLD is now up 19 cents to $161.57. There’s talk of an erroneous trade in the gold futures market early today, in which a sale of 7500 gold futures was being attributed to a “fat finger” mistake. GLD opened at $160.49 per share and .6 percent below Friday’s close. It has since battled back to positive territory and options volume in the product is 147,000 calls and 24,000 puts through midday. The top trade is a morrning buyer of 29,100 Sep 200 calls for 80 cents per contract. Another 9,000 traded for 80 cents on ISE and is an opening buyer, according to ISEE. 41,100 now Sep 200 calls on GLD traded against 35,584 in open interest. Separately, 18400 Dec 210 calls traded for $1.45 on ISE and was a closing buyer. A third noteworthy trade is a 15000-lot of Dec 190 calls for $2.78 on Philli when the market was $2.68 to $2.78. Overall, the flow seems bullsh and possibly on the view that today’s fat finger mistake offered an opportunity to buy upside calls on GLD.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.