A single trader sold a $202 million call spread in SPDR Gold Trust, targeting a pause in gold’s 15% August surge through mid-September.
A trader sold a $202 million call spread in the SPDR Gold Trust (GLD) on August 24, positioning against further gains in gold’s 15% August rally, its strongest month since 2008. The trade involves selling 115,000 in-the-money 420-strike calls expiring September 18, generating a $60 million credit.
Gold closed at $426.69 on August 24, up 14.73% month-to-date and 37.38% year-over-year. The call spread pays off if GLD stagnates or declines modestly, though it does not require a sharp drop to profit.
The position reflects caution amid gold’s historic run but is not a outright bearish bet, as it benefits from a pause rather than a reversal in the rally.