Paper bought ~75K GLD Mar 108 calls, sold 75K GLD Mar 117 calls AND put up a 1 by 2 call spread buying the Mar 113 calls & selling the Mar 114 calls.?
SPDR Gold Trust ETF, trading 107.31 up 1.23 with an IV30 of 15.58 and an HV10 of 15.02, is seeing bullish call action today. GLD, which has an ADV of 105,000 contracts and OI of 2.35 million, saw traders put up a large call spread and ratio spread all at once.? A trader bought just under 75,000 of the March 108 calls for 2.26, sold 75,000 of the Mar 117 calls at .46.? Then at the same time the trader put up a 1 by 2 call spread buying the March 113 calls for .89 and selling the March 114 calls at .75.?
All told the trader has on a bit of a Christmas tree formation but for a debit.? This is clearly a bullish trade with the trader targeting gold to move toward 114 between now and March expiration.? And because of the trade set up, the trader was able to reduce his or her cost on the call spread while reducing most of the upside risk on the spread to a ginormous move in the underlying.
This trade should be considered aggressively bullish and mildly bullish volatility although the trade is more neutral IV.