Are Options Block Trades Saying That Gold Is Going To New Highs?

Commodities Investing, Gold & Silver, Options
by Jay Soloff
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A couple massive options block trades last week could be very bullish indicators that the price of gold is headed much higher.  Call spreads in VanEck Vectors Gold Miners ETF (GDX) and SPDR Gold Shares (GLD) could both be pointing towards much more upside in gold.  The precious metal is often used as a hedge against uncertainty by investors, and the markets are definitely in a period of uncertainty. What’s more, Russia has said it will accept gold as payment for natural gas. These block trades could be positioning for a large move higher by September.

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
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