Jon Najarian Sees Unusual Options Activity In SPDR Gold Trust ETF
When the stock was trading at $111, Najarian noticed a purchase of 25,000 contracts of the March 125 calls. He explained that the strike is way out of the money, but it's not far from the levels where SPDR Gold Trust (ETF) traded at the beginning of November.
Instead of buying the March 125 calls, Najarian decided to buy the March 120/125 call spread and he plans to hold the position for a month or two. He added that the trade could be successful, especially if inflation rises in the U.S. after the Fed meeting.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.