Dan Nathan Sees Unusual Options Activity In The SPDR Gold ETF

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

He said that put options activity was a half of the call options activity and during the trading session on Tuesday, he noticed that somebody sold to close 7,500 contracts of the April 120 calls and bought to open 7,500 contracts of the May 120 calls for $2.86. The trade breaks even at $122.86 or 1.38 percent above the current market price.

Nathan explained that the current options activity in SPDR Gold Trust (ETF) is similar to the options activity in March 2016, prior to the big rally. He believes that the stock might break out on the upside.