Further Gold Weakness Investors Hedging Against

Further Gold Weakness Investors Hedging Against : As the price of gold stutter steps, investors are actively buying defensive puts to guard against deeper declines on the SPDR Gold Trust (GLD) that recently traded at $133.98. So far this year, GLD is down 3.5%. In current trading, investors have bought blocks of 5,000 March $133 puts and 5,000 March $125 puts that would increase in value if GLD fell below either strike price.

In each trade, investors paid top dollar as the orders were executed at the asking price. Normally, large options orders are executed between the bid and the ask so the takeaway from these big trades is that options dealers are uneasy about shorting GLD. To do so, the dealers want to be paid top dollar. The bearish footprints builds upon yesterday’s action that also saw investors adding to bearish positions, especially among the March $127 puts and January $129 puts. The top outstanding position among GLD’s options are the January $120 puts. For the latest updates PRESS CTR + D or visit Stock Market news Today

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