Options traders are making big bets on gold. Over the past few weeks has been very much open contracts under which traders put on the growth of the precious metal by the end of the year by 5-7% , says CNBC.
Of all the options on the ETF SPDR Gold Trust is to provide options ” call ” in the strike of 130 , where 66 thousand contracts open .
The main volume was three days : January 31 , February 3 and last Thursday. In those days it was open 24 thousand , 21.5 thousand and 20 thousand contracts.
Thus , these positions will bring investors to profit if the price of the underlying asset will exceed the strike price plus the premium paid for the option. Expiration will be held in December 2014
Given that last Thursday said ” calls ” cost $ 6.75 , the profit they will only if the price of SPDR Gold Trust will rise from the current $ 127.40 to $ 136.75 , which corresponds to the price of an ounce of gold at $ 1425 .
But the main interest lies in the fact that, for example , transactions carried out on Thursday, the trader cost of $ 12.8 million , which means that it is an institutional investor with a large enough capital, the so-called ” smart money ” .
From the beginning, gold shows very good dynamics : already has added 8%. Recent transactions are priced at $ 1316 per ounce.