Trader sees limit to rebound in gold fund
The SPDR Gold Shares Fund has been trying to reverse a six-month slide, but one trader sees only limited upside potential from here.
optionMONSTER systems detected the sale of 3,000 April 62 calls for $0.10. This is clearly a new position, as the strike's open interest was just 64 contracts before the trade appeared.
The calls could have been sold naked with an initial bearish bias, but they may well have been paired with long shares in a covered call strategy. The latter would be bullish up to that strike price, but not beyond. (See our Education section)
The GLD is down 0.4 percent to $155.63 this morning. Yesterday's close was the highest since the exchange-traded fund gapped lower in the middle of February. Shares were at a high of $174 in October.
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