Traders are actively engaging in options for the SPDR Gold ETF (GLD) and the VanEck Gold Miners ETF (GDX), with GDX experiencing a notable rally of over 4% despite a decline in gold futures. The options market showed a strong bullish sentiment in GDX, where call options were traded at a ratio of more than 5 to 1 compared to puts, with over 10,000 calls bought against 4,400 puts.
The most popular options were the 100 and 110-strike calls expiring on June 18, which require significant price increases to be profitable. Conversely, a significant trader placed a bearish bet by purchasing over $1 million worth of 85-strike puts expiring July 17, indicating skepticism about gold's near-term recovery.
Gold prices are currently down nearly 20% from their January peak but have increased by 89% over the past two years, while gold miners have seen a 144% rise in the same timeframe. Additionally, trading in Newmont Mining showed a bearish skew, with nearly 100,000 contracts traded and a $22 million deep in-the-money call sale, suggesting some investors are exiting positions.
This mixed sentiment reflects the ongoing uncertainty in the gold market due to geopolitical tensions and fluctuating interest rate expectations