There has recently been unusual options activity in SPDR Gold Shares ETF (GLD). GLD is a popular method for trading gold as the ETF is based on physical gold holdings. Gold prices are moving higher due to the potential conflict between the US and Iran.

Gold is often used as a hedge against uncertainty, and what may play out in the Middle East definitely qualifies as uncertain. A trader bought almost 9,000 February call spreads in GLD that make money if the ETF goes above $151.85, with the current stock price just under $145. It’s a debit spread so the trader can only lose the amount spent on the position but can make roughly 7x the premium at max gain.

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