By Pete Najarian, co-founder of OptionMonster.
As the price of gold breaks through $900 an ounce today, the SPDR Gold Shares ETF (GLD) appears to have cooled a bit but is still seeing options action.
Options trading in the SPDR Gold fund was heaviest last week at the February 95 calls, as more than 35,000 went for up to $1.40. This morning, OptionMonster's tracking systems showed those GLD calls traded as high as $1.90.
The ETF had been rising sharply in the last few sessions but is nearly flat on the day, up about 0.64% to just over $89. The GLD had been under $80 as recently as Jan. 15 but has risen with the price of gold, which had been trading in a "pennant" pattern indicating that a break up or down was pending.The precious metal's direction turned decidedly north last week and broke through $900 an ounce this morning. In addition to the GLD fund, that rise has been reflected in other ETFs such as the Market Vectors Gold Miners fund (GDX), the iShares COMEX Gold Trust (IAU), and the PowerShares DB Gold (DGL). Disclosure: Positions in GLD and other gold-related assets.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV