A battle is brewing in the gold pits. Here are the winners and losers
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- GDX rallied more than 4% on Tuesday while gold futures fell, and call options volumes outpaced puts by over 5 to 1 at one point.
- GDX saw more than 10,000 call contracts traded at the ask or above versus 4,400 puts, with the 100‑ and 110‑strike calls expiring June 18 being the most active.
- GDX attracted a $1 million premium purchase of thousands of 85‑strike puts expiring July 17, exceeding the combined premium of the 100‑ and 110‑strike calls.
- GLD also experienced bullish options volume, but the story highlights the stronger call‑put imbalance in GDX.
- Newmont Mining options activity approached 100,000 contracts and $500 million in premium, featuring a $22 million deep‑in‑the‑money call sale that signals a large position unwind.
Why it matters: Miners’ stocks gain from the rally and call buying, while investors who bought the $1 million put trade stand to profit if the rally stalls; the heavy put activity signals a hedge against a potential pullback.
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