Stateside's Canadian Core and Barrel Shack Message Board

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Gold/Mining/Energy : Stateside's Canadian Core and Barrel Shack

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From: f-layer	1/13/2015 3:23:08 PM
	of 8875

A trader just placed a giant bet on a $130 rise in the gold price "The trader purchased 40,000 Mar 2015 GLD or SPDR Gold Trust (ETF) (NYSEARCA:GLD) gold call options. The strike of the call options was $120, which is not very far from the current price of about $117, so the premium paid was huge. "Still due to the limited time until March 2015, it’s obvious that the option trade was a bold, directional bet expressing the view that Gold might appreciate up to $130-$135. The amount committed to the trade was $10+ million. "If the price of GLD reaches the range $130-$135 before expiration, this pro trader, probably working at a desk in a big bank or a hedge fund, will make between 300% and 600% of his investment or $20-$50 million net profit." mining.com

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