A million-dollar gold bear emerges ahead of the Fed decision
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- Trader executes a $1 million credit trade by selling 4,000 $450-strike GLD calls and buying 8,000 $360-strike puts expiring July 17
- GLD pulls back 0.6% to $419.34 ahead of the Fed decision, down sharply from its $510 all-time high in January
- Fed funds futures traders expect no rate change, but rising 10-year yields above 4.4% in March coincided with gold’s steepest pullback
Why it matters: The trader gains up to $1.1 million if gold stays below $450, but risks massive losses if it surges; a 15% drop would hurt leveraged gold funds and miners while boosting short positions tied to GLD.
