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Someone bet $2 million on gold rally - See this ?
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| Someone bet $2 million on gold rally - See this |
Someone bet $2 million on gold rally - See this
The GLD, the ETF that tracks gold, has been on a tear — up 17 percent this year. And according to one savvy trader, the precious metal's run is far from over.
On Thursday, when bullish trades outpaced bearish ones, a trader bet more than $2 million that the gold could rally 10 percent in one month.
The trader purchased 10,000 July 125-strike calls for $2.29. Since each call option accounts for 100 shares, this a $2 million bet that the GLD will rise above $127.30 by July expiration.
The move comes as investors pile into the safe-haven assets as a number of factors like global uncertainty, the Fed and oil loom over the markets. Sentiment Trader have been watching this for a while, and we have seen that there is nervousness out there with the bigger investors. Especially with earnings coming this week.
We did some technical analysis on GOLD recently and you can see that there is a bullish flag forming, but not only that. IF you look at the bottom of the chart, you can see that the MACD seems to be rolling up to a BUY signal mid term. The last time the buy signal triggered on MACD for gold, we rallied quite extensively. Perhaps this is about to happen again?.... time will tell.....
Given how much it has moved just since January, just under 17 percent, you can see why risking just about 2 percent of the underline could be a smart bet. We will continue to monitor this for our VIP MEMBERS also.
Shares were in the red on Friday, but up 1 percent for the week. - Source : Cnbc.
The GLD, the ETF that tracks gold, has been on a tear — up 17 percent this year. And according to one savvy trader, the precious metal's run is far from over.
On Thursday, when bullish trades outpaced bearish ones, a trader bet more than $2 million that the gold could rally 10 percent in one month.
The trader purchased 10,000 July 125-strike calls for $2.29. Since each call option accounts for 100 shares, this a $2 million bet that the GLD will rise above $127.30 by July expiration.
The move comes as investors pile into the safe-haven assets as a number of factors like global uncertainty, the Fed and oil loom over the markets. Sentiment Trader have been watching this for a while, and we have seen that there is nervousness out there with the bigger investors. Especially with earnings coming this week.
We did some technical analysis on GOLD recently and you can see that there is a bullish flag forming, but not only that. IF you look at the bottom of the chart, you can see that the MACD seems to be rolling up to a BUY signal mid term. The last time the buy signal triggered on MACD for gold, we rallied quite extensively. Perhaps this is about to happen again?.... time will tell.....
Given how much it has moved just since January, just under 17 percent, you can see why risking just about 2 percent of the underline could be a smart bet. We will continue to monitor this for our VIP MEMBERS also.
Shares were in the red on Friday, but up 1 percent for the week. - Source : Cnbc.
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