Put Purchase Bets on Higher Gold (GLL)

Shares of the PROSHARES ULTRASHORT GOLD ETF

are trading lower today by 2.35%, currently at $40.32, as Gold futures rise. This ETF, which tracks the double-inverse of gold prices has been falling for the past six months. I am detecting put buying on the ETF for the second day in a row. The June $41 put was purchased today nearly 2,000 times; open interest on the strike is 2,963 contracts (this open interest comes from yesterday’s put buying I highlighted yesterday). Someone seems to be building a long gold position via long puts on this ETF. The PROSHARES ULTRASHORT GOLD ETF seeks to replicate, net of expenses, twice the inverse daily performance of gold bullion as measured by the U.S. Dollar p.m. fixing price for delivery in London. The fund normally invests assets in financial instruments with economic characteristics inverse to the index. It may employ leveraged investment techniques in seeking its investment objective.