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Trade sees support for gold

Chris McKhann (chris.mckhann@optionmonster.com)

The SPDR Gold Shares Fund fell again on Tuesday, but put sellers looked for a floor.

optionMONSTER's trade scanners systems showed that one print in the May 151 puts was the largest trade of the day in the GLD. A trader sold 6,000 contracts for the $1.28 bid price. The volume was more than twice the open interest so that was a new opening position.

The put selling is a bet that the GLD will hold up above $151 through that May expiration. Some traders also sell puts with an eye toward buying shares on a pullback. (See our Education Section .)

GLD was down 0.32 percent to close out the day at $154.74. It was above $156 on Thursday, the highest since Feb. 14. The fund was as low as $150.84 before beginning the sideways action of the last month.

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