Loading ...GLD CALLS ARE CHEAP WITH PUTS IN DEMAND
[this is not the same article-the last one was about GDX]
Similar to the VanEck Vectors Gold Miners ETF (GDX), the 10-day moving average of GLD’s put/call skew on 10% out-of-the-money (OOTM) options — which compares implied volatility (IV) readings for OOTM puts against OOTM calls — has skyrocketed recently, and now stands at a 2017 high. This indicates traders are bidding up the odds of an extended drop in GLD, which touched a five-month low just last week.
In fact, options traders have been buying to open GLD puts over calls at near annual-high clip in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the fund’s 10-day put/call volume ratio of 1.19 is higher than 98% of all others from the past year.
What’s more, total call open interest for GLD stands at just under 1.9 million contracts — the lowest point in at least a year. Total put open interest, on the other hand, stands at just under a million contracts, in the middling 55th percentile of its annual range. Echoing that, GLD’s 30-day IV skew of negative 0.9% is higher than 91% of all other readings from the past year, suggesting calls on the ETF have rarely been cheaper relative to puts.