Scott Nations Wants To Buy A Call Spread In GLD

On CNBC's Fast Money, Scott Nations suggested investors consider investing in gold through options. Gold is trading at its 52-week high and if you are bullish on gold, but also worried about buying it near its 52-week high you should limit your downside with a call spread.

Scott Nations recommended investors sell July 132 call in SPDR Gold Trust (ETF) (NYSE: GLD) for $0.70 and buy July 122 call for $3.10. Your maximal loss in this trade would be $2.40, and your profit is capped at $132.

SPDR Gold Trust (ETF) (GLD) fell 0.40% today, and closed at $121.