Dan Nathan Sees Unusual Options Activity In SPDR Gold Trust ETF

On CNBC's Options Action, Dan Nathan spoke about unusually high options activity in SPDR Gold Trust (ETF) GLD.

He noticed on Thursday that call options volume was two times higher than the put options volume and when the ETF was trading at $129.50, there was a buyer of 46,000 contracts of the June 2017, 144/172 call spread for $3. The trader paid $13.8 million in premium for the trade and if the price reaches the upper strike of the spread, he or she can maximally make a profit of $115 million.

The breakeven for the trade is at $147 or 13.3 percent higher from the closing price on Thursday and if the ETF jumps 32.5 percent or higher at the June 2017 expiration, the trader is going to make the maximal profit.