GLD Put Buyers Target 40% More Gold Downside as ETF Slides 25% From February Peak
Updated
Updated · CNBC · Jun 10
GLD Put Buyers Target 40% More Gold Downside as ETF Slides 25% From February Peak
3 articles · Updated · CNBC · Jun 10
Summary
$130 million of $200 million in GLD options premium traded Wednesday was tied to puts, with eight of the 10 most-active contracts bearish after another 3% drop.
The heaviest downside bets included a same-day 380-strike put and a June 2028 240-strike put priced at $11.50, implying expectations gold could fall roughly 40% more over two years.
Selling pressure has been driven by Turkey's central bank and Gulf states unloading gold, India's higher import duties, and stop-loss selling after gold broke below $4,400, according to Arora Report's Nigam Arora.
Gold miners are drawing a different options signal: in GDX, calls outpaced puts by more than 2-to-1, and the biggest trade was an almost $8 million December 2028 short straddle.
That split suggests traders see more downside risk in bullion than in miners, which some investors view as cheaper exposure after lagging when gold traded above $5,000.