BUZZ-Gold options glitter as stocks slide

Thu Feb 11, 2016 1:23pm EST
 
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** Options on SPDR Gold Fund and gold mining stocks active in bullish trading as the yellow metal jumps to one-year high on Thursday

** Spot gold surged nearly 4 pct as fears about financial instability, a lower dollar and U.S. Treasury yields led investors to seek refuge in the precious metal

** GLD options volume at 557,000 contracts, 3x the avg daily volume, according to Trade Alert data; trading volume on pace to top 1 mln contracts for the day, making it one of the busiest days ever

** March 125 & 127 calls the most active with combined trading volume of 75,000 contracts

** Relative to puts, the price of calls the most elevated in at least the past year, according to Trade Alert data

** Market Vectors Gold Miners ETF's options also busy with options trading at 2x the normal pace

** Options on miners Goldcorp Inc and Randgold Resources Ltd active as bullish trades dominate

** CBOE Gold ETF Volatility index, the "Gold VIX", up about 9 points to 30.32, a two-and-a-half-year high