Mike Khouw Sees Unusual Options Activity In SPDR Gold Trust ETF

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On CNBC's Options Action, Mike Khouw spoke about unusually high bullish options activity in SPDR Gold Trust (ETF) GLD. Call options outnumbered puts 5 to 1 in the ETF on Tuesday and call options volume was 1.3 times higher than the average daily call options volume.

The most of the call options volume was the result of one trade. A trader bought 66,000 contracts of the September 135/140 call spread for $0.96, paying around $6 million in premium for the trade. The breakeven for the trade is at $135.96 or 5 percent higher from the closing price on Tuesday. The trader can maximally make $4.04, if the stock jumps 8.1 percent to $140, by the September expiration.

Posted In: CNBCOptionsMarketsMediaMike KhouwOptions Action
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