economy

April 29, 2026

A million-dollar gold bear emerges ahead of the Fed decision

Someone sold upside call exposure in the SPDR Gold ETF (GLD) while simultaneously buying downside put exposure in a two-pronged trade.

A million-dollar gold bear emerges ahead of the Fed decision

TL;DR

  • An options trader sold $450-strike GLD calls expiring July 17 for $3.1 million.
  • The same trader bought $360-strike GLD puts expiring July 17 for $2 million.
  • This trade created a $1 million credit for the trader.
  • The strategy profits if GLD drops at least 15% by mid-July.
  • This is a contrarian bet against gold's recent three-year rally.
  • GLD has struggled since hitting an all-time high in late January.
  • The trade's upside breakeven price of $450 aligns with April's high price.
  • The trade could be a proxy bet on the Fed and interest rates, as gold has previously struggled when Treasury yields spiked.

Continue reading the original article