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Options investors are betting on this gold-price trend: Susquehanna
CNBC • • business
Key Points:
- Options investors are increasingly paying for upside exposure in gold, as one-month implied volatility remains near recent lows, allowing cheaper participation in potential price gains.
- There has been a notable shift in options demand, with increased buying of upside calls and reduced interest in downside puts, reversing the earlier summer trend favoring put protection.
- A significant trade highlighted was the purchase of 8,000 November 460 calls on the SPDR Gold Trust at about $5.55, while the ETF was trading at $405.49, indicating strong bullish sentiment.
- Gold funds are experiencing their strongest inflows since January, supporting the positive momentum in the precious metal.
- Spot gold rose 0.3% to $4,428.43 per ounce, and U.S. December gold futures increased 0.2% to settle at $4,482.40, reflecting ongoing market strength.
