“The rally in gold continues, but some option traders are looking to profit from a pullback in one key exchange-traded fund. The spot price of the precious metal has hit another new high this morning, and the SPDR Gold Shares (NYSE:GLD) fund broke through $129 for the first time. It is now trading at $128.85, up 0.73 percent on the day. That marks the fourth new high in four consecutive days.  We have seen a number of trades go off setting up for a potential pullback. Today fits in that category, but with a different tack,”   Chris McKhann Reports From Option Monster.

McKhann continues to say, “An out-of-the-money put calendar spread will profit if the (NYSE:GLD) falls, but within a given range of $125. A trader sold 15,500 of the October 125 puts for $0.40 and then bought 15,500 of the December 125 puts for $2.65. The volume at both strikes is above open interest. This trade will take a maximum profit if the (NYSE:GLD) falls to $125 through expiration.  The reason for selling the near-term calls may simply be to reduce the cost of the longer-term puts, with the idea of holding the long-term puts through expiration, which isn’t always the goal of a calendar spread.”

Here is a snapshot of the options activity below:

Strike Symbol Last Chg Bid Ask Vol Open Int 60.00 GLD101016P00060000 0.01 0.00 N/A 0.03 0 147 63.00 GLD101016P00063000 0.03 0.00 N/A 0.03 0 200 64.00 GLD101016P00064000 0.03 0.00 N/A 0.03 0 228 65.00 GLD101016P00065000 0.03 0.00 N/A 0.03 0 200 66.00 GLD101016P00066000 0.03 0.00 N/A 0.03 0 86 67.00 GLD101016P00067000 0.03 0.00 N/A 0.02 0 140 68.00 GLD101016P00068000 0.03 0.00 N/A 0.02 0 98 69.00 GLD101016P00069000 0.04 0.00 N/A 0.02 0 194 71.00 GLD101016P00071000 0.03 0.00 N/A 0.02 0 104 72.00 GLD101016P00072000 0.03 0.00 N/A 0.02 0 126 73.00 GLD101016P00073000 0.04 0.00 N/A 0.02 0 70 74.00 GLD101016P00074000 0.04 0.00 N/A 0.02 0 30 76.00 GLD101016P00076000 0.04 0.00 N/A 0.02 0 89 77.00 GLD101016P00077000 0.04 0.00 N/A 0.02 0 19 78.00 GLD101016P00078000 0.02 0.00 N/A 0.02 0 78 79.00 GLD101016P00079000 0.05 0.00 N/A 0.02 0 39 80.00 GLD101016P00080000 0.02 0.00 N/A 0.02 0 160 81.00 GLD101016P00081000 0.04 0.00 N/A 0.02 0 228 82.00 GLD101016P00082000 0.03 0.00 N/A 0.02 0 332 84.00 GLD101016P00084000 0.04 0.00 N/A 0.02 0 1,133 85.00 GLD101016P00085000 0.04 0.00 N/A 0.02 0 762 87.00 GLD101016P00087000 0.03 0.00 N/A 0.02 0 1,309 88.00 GLD101016P00088000 0.02 0.00 N/A 0.02 0 502 90.00 GLD101016P00090000 0.04 0.00 N/A 0.02 0 935 91.00 GLD101016P00091000 0.02 0.00 N/A 0.02 0 253 92.00 GLD101016P00092000 0.04 0.00 N/A 0.02 0 332 93.00 GLD101016P00093000 0.04 0.00 N/A 0.02 0 412 94.00 GLD101016P00094000 0.03 0.00 N/A 0.02 0 637 95.00 GLD101016P00095000 0.02 0.00 0.01 0.02 0 1,335 96.00 GLD101016P00096000 0.07 0.00 N/A 0.02 0 1,804 97.00 GLD101016P00097000 0.04 0.00 N/A 0.02 0 669 98.00 GLD101016P00098000 0.09 0.00 N/A 0.03 0 372 99.00 GLD101016P00099000 0.03 0.00 N/A 0.03 0 845 100.00 GLD101016P00100000 0.04 0.00 N/A 0.03 20 7,006 101.00 GLD101016P00101000 0.01 0.00 N/A 0.03 0 302 103.00 GLD101016P00103000 0.04 0.00 N/A 0.03 0 1,153 104.00 GLD101016P00104000 0.02 0.00 N/A 0.03 10 908 105.00 GLD101016P00105000 0.02 0.00 N/A 0.03 20 28,191 106.00 GLD101016P00106000 0.02 0.00 0.02 0.03 242 1,199 109.00 GLD101016P00109000 0.02 0.00 N/A 0.03 8 2,152 110.00 GLD101016P00110000 0.02 0.01 0.02 0.04 2 14,626 111.00 GLD101016P00111000 0.03 0.00 0.01 0.03 103 5,229 112.00 GLD101016P00112000 0.04 0.02 0.02 0.03 1 18,499 113.00 GLD101016P00113000 0.03 0.02 0.03 0.04 20 2,052 114.00 GLD101016P00114000 0.03 0.01 0.02 0.05 10 7,251 115.00 GLD101016P00115000 0.04 0.00 0.04 0.05 25 21,428 116.00 GLD101016P00116000 0.06 0.01 0.05 0.06 294 9,510 117.00 GLD101001P00117000 0.02 0.00 N/A 0.02 1 1 117.00 GLD101016P00117000 0.07 0.01 0.05 0.07 602 6,582 118.00 GLD101016P00118000 0.07 0.02 0.06 0.07 245 49,382 119.00 GLD101001P00119000 0.02 0.00 N/A 0.02 5 65 119.00 GLD101008P00119000 0.06 0.00 0.01 0.07 116 116 119.00 GLD101016P00119000 0.08 0.03 0.07 0.08 69 8,341 120.00 GLD101001P00120000 0.02 0.00 N/A 0.02 1 152 120.00 GLD101008P00120000 0.08 0.00 0.01 0.07 10 10 120.00 GLD101016P00120000 0.10 0.03 0.09 0.10 144 44,484 121.00 GLD101001P00121000 0.02 0.01 N/A 0.02 1 169 121.00 GLD101008P00121000 0.05 0.07 0.02 0.08 20 10 121.00 GLD101016P00121000 0.12 0.06 0.11 0.12 312 18,334 122.00 GLD101001P00122000 0.01 0.04 N/A 0.02 1 239 123.00 GLD101001P00123000 0.03 0.00 N/A 0.02 171 605 123.00 GLD101008P00123000 0.16 0.00 0.05 0.11 20 20 123.00 GLD101016P00123000 0.22 0.09 0.21 0.23 1,755 15,398 124.00 GLD101001P00124000 0.02 0.00 N/A 0.02 2,027 2,923 124.00 GLD101016P00124000 0.31 0.13 0.31 0.32 1,034 21,481 125.00 GLD101001P00125000 0.01 0.02 N/A 0.01 15 4,574 125.00 GLD101008P00125000 0.17 0.13 0.17 0.20 90 210 125.00 GLD101016P00125000 0.44 0.17 0.44 0.45 16,707 13,354 126.00 GLD101001P00126000 0.01 0.05 N/A 0.01 154 19,758 126.00 GLD101008P00126000 0.31 0.15 0.28 0.31 142 178 126.00 GLD101016P00126000 0.64 0.23 0.64 0.65 2,554 19,775 127.00 GLD101001P00127000 0.01 0.18 N/A 0.01 1,177 8,603 127.00 GLD101008P00127000 0.51 0.28 0.48 0.51 745 286 128.00 GLD101008P00128000 0.82 0.39 0.80 0.85 543 196 128.00 GLD101016P00128000 1.29 0.39 1.28 1.30 6,594 6,721 129.00 GLD101001P00129000 0.50 1.08 0.45 0.50 1,340 480 129.00 GLD101008P00129000 1.27 0.52 1.27 1.33 927 28 129.00 GLD101016P00129000 1.76 0.49 1.76 1.77 5,155 1,518 130.00 GLD101001P00130000 1.32 0.79 1.42 1.47 595 274 130.00 GLD101008P00130000 1.89 0.62 1.89 1.97 45 24 130.00 GLD101016P00130000 2.41 0.49 2.35 2.36 524 942 131.00 GLD101001P00131000 2.28 1.17 2.38 2.45 6 77 131.00 GLD101008P00131000 2.55 0.74 2.66 2.77 3 1 131.00 GLD101016P00131000 3.05 0.65 3.00 3.10 230 247 132.00 GLD101001P00132000 3.30 1.15 3.35 3.45 7 45 132.00 GLD101008P00132000 3.30 1.05 3.50 3.70 10 11 132.00 GLD101016P00132000 3.75 0.60 3.80 3.90 70 116 133.00 GLD101001P00133000 5.45 0.00 4.35 4.45 15 74 133.00 GLD101016P00133000 4.40 1.25 4.65 4.75 31 114 134.00 GLD101016P00134000 7.35 0.00 5.55 5.65 25 57 135.00 GLD101008P00135000 8.20 0.00 6.35 6.55 32 16 135.00 GLD101016P00135000 7.75 0.00 6.55 6.65 2 52 136.00 GLD101016P00136000 8.15 0.00 7.45 7.60 11 91 137.00 GLD101016P00137000 8.35 1.60 8.40 8.60 1 121 139.00 GLD101016P00139000 11.10 0.00 10.35 10.55 26 51 140.00 GLD101016P00140000 12.33 0.00 11.35 11.55 10 83 141.00 GLD101016P00141000 14.15 0.00 12.35 12.55 18 5 142.00 GLD101016P00142000 26.40 0.00 13.25 13.55 0 5 143.00 GLD101016P00143000 27.25 0.00 14.25 14.55 0 5 144.00 GLD101016P00144000 28.10 0.00 15.25 15.55 0 5

Strike Symbol Last Chg Bid Ask Vol Open Int 55.00 GLD101218P00055000 0.05 0.00 N/A 0.06 0 2,199 56.00 GLD101218P00056000 0.07 0.00 N/A 0.06 0 359 57.00 GLD101218P00057000 0.06 0.00 N/A 0.06 0 115 58.00 GLD101218P00058000 0.08 0.00 N/A 0.06 0 47 59.00 GLD101218P00059000 0.09 0.00 N/A 0.06 0 174 60.00 GLD101218P00060000 0.07 0.00 N/A 0.06 0 734 62.00 GLD101218P00062000 0.04 0.00 N/A 0.07 0 319 63.00 GLD101218P00063000 0.03 0.00 N/A 0.07 0 380 64.00 GLD101218P00064000 0.03 0.00 N/A 0.07 0 561 65.00 GLD101218P00065000 0.05 0.00 N/A 0.07 0 1,841 66.00 GLD101218P00066000 0.04 0.00 N/A 0.07 0 643 67.00 GLD101218P00067000 0.05 0.00 N/A 0.07 0 1,393 68.00 GLD101218P00068000 0.05 0.00 N/A 0.07 0 421 69.00 GLD101218P00069000 0.06 0.00 N/A 0.07 0 804 70.00 GLD101218P00070000 0.05 0.00 N/A 0.07 10 1,094 71.00 GLD101218P00071000 0.07 0.00 N/A 0.07 0 433 72.00 GLD101218P00072000 0.07 0.00 N/A 0.07 0 380 73.00 GLD101218P00073000 0.08 0.00 N/A 0.07 0 212 74.00 GLD101218P00074000 0.08 0.00 N/A 0.07 0 379 75.00 GLD101218P00075000 0.07 0.00 N/A 0.07 4 650 76.00 GLD101218P00076000 0.12 0.00 N/A 0.07 0 432 77.00 GLD101218P00077000 0.10 0.00 N/A 0.07 0 232 78.00 GLD101218P00078000 0.11 0.00 N/A 0.07 0 468 79.00 GLD101218P00079000 0.12 0.00 N/A 0.07 0 504 80.00 GLD101218P00080000 0.04 0.00 N/A 0.07 2 6,659 81.00 GLD101218P00081000 0.07 0.00 N/A 0.08 0 1,146 82.00 GLD101218P00082000 0.07 0.00 0.01 0.08 0 489 83.00 GLD101218P00083000 0.05 0.00 0.01 0.08 24 453 84.00 GLD101218P00084000 0.07 0.00 0.01 0.08 0 347 85.00 GLD101218P00085000 0.06 0.00 0.02 0.09 50 6,049 85.00 GLD101231P00085000 0.25 0.00 0.04 0.14 0 243 86.00 GLD101218P00086000 0.06 0.00 0.03 0.10 5 518 87.00 GLD101218P00087000 0.10 0.00 0.03 0.12 0 654 88.00 GLD101218P00088000 0.06 0.00 0.04 0.13 0 2,469 89.00 GLD101218P00089000 0.09 0.00 0.05 0.13 45 694 90.00 GLD101218P00090000 0.10 0.00 0.05 0.13 160 7,364 91.00 GLD101218P00091000 0.09 0.00 0.06 0.14 19 1,348 92.00 GLD101218P00092000 0.08 0.00 0.06 0.14 10 2,150 93.00 GLD101218P00093000 0.10 0.00 0.07 0.15 60 1,887 94.00 GLD101218P00094000 0.16 0.00 0.08 0.16 0 904 95.00 GLD101218P00095000 0.12 0.00 0.08 0.16 6 9,974 95.00 GLD101231P00095000 0.10 0.00 0.12 0.18 10 145 96.00 GLD101218P00096000 0.12 0.00 0.09 0.17 17 1,497 97.00 GLD101218P00097000 0.13 0.00 0.10 0.17 17 2,626 98.00 GLD101218P00098000 0.14 0.00 0.11 0.18 16 1,634 99.00 GLD101218P00099000 0.15 0.00 0.12 0.19 6 1,459 100.00 GLD101218P00100000 0.14 0.04 0.14 0.18 5 34,654 101.00 GLD101218P00101000 0.15 0.00 0.13 0.21 5 1,733 102.00 GLD101218P00102000 0.20 0.00 0.15 0.21 42 2,181 103.00 GLD101218P00103000 0.20 0.00 0.16 0.23 40 1,070 104.00 GLD101218P00104000 0.20 0.00 0.17 0.23 4 1,867 105.00 GLD101218P00105000 0.23 0.00 0.19 0.24 13 8,456 106.00 GLD101218P00106000 0.28 0.00 0.20 0.26 20 5,010 107.00 GLD101218P00107000 0.30 0.00 0.22 0.29 2 3,464 108.00 GLD101218P00108000 0.25 0.10 0.25 0.32 5 21,371 108.00 GLD101231P00108000 1.65 0.00 0.34 0.41 0 167 109.00 GLD101218P00109000 0.36 0.00 0.28 0.35 21 1,819 109.00 GLD101231P00109000 2.16 0.00 0.39 0.46 0 113 110.00 GLD101218P00110000 0.37 0.05 0.35 0.39 15 12,369 110.00 GLD101231P00110000 0.53 0.00 0.45 0.51 24 580 111.00 GLD101218P00111000 0.43 0.02 0.38 0.42 10 6,492 111.00 GLD101231P00111000 0.96 0.00 0.49 0.57 0 993 112.00 GLD101218P00112000 0.58 0.00 0.44 0.46 30 6,358 112.00 GLD101231P00112000 0.90 0.00 0.56 0.64 5 358 113.00 GLD101218P00113000 0.50 0.17 0.50 0.52 28 4,894 113.00 GLD101231P00113000 1.11 0.00 0.64 0.70 0 239 114.00 GLD101218P00114000 0.58 0.11 0.56 0.59 10 2,962 114.00 GLD101231P00114000 0.91 0.00 0.70 0.78 5 362 115.00 GLD101218P00115000 0.65 0.13 0.65 0.68 31 48,901 115.00 GLD101231P00115000 1.23 0.00 0.84 0.89 33 556 116.00 GLD101218P00116000 0.75 0.22 0.75 0.77 1 9,877 116.00 GLD101231P00116000 1.05 0.00 0.96 1.01 5 133 117.00 GLD101218P00117000 0.87 0.12 0.86 0.89 256 19,043 117.00 GLD101231P00117000 1.24 0.00 1.09 1.15 1 184 118.00 GLD101218P00118000 0.99 0.21 0.98 1.02 87 17,958 118.00 GLD101231P00118000 1.42 0.00 1.24 1.31 10 106 119.00 GLD101218P00119000 1.14 0.24 1.14 1.18 82 4,078 119.00 GLD101231P00119000 1.57 0.00 1.43 1.49 27 336 120.00 GLD101218P00120000 1.30 0.23 1.32 1.36 399 14,234 120.00 GLD101231P00120000 2.08 0.00 1.64 1.70 3 2,767 121.00 GLD101218P00121000 1.55 0.36 1.54 1.57 126 6,426 121.00 GLD101231P00121000 2.10 0.00 1.87 1.94 8 603 122.00 GLD101218P00122000 1.78 0.26 1.77 1.81 102 3,092 122.00 GLD101231P00122000 2.36 0.00 2.13 2.21 31 107 123.00 GLD101218P00123000 2.05 0.25 2.05 2.09 68 2,912 123.00 GLD101231P00123000 2.67 0.00 2.43 2.51 57 71 124.00 GLD101218P00124000 2.34 0.31 2.36 2.41 17 1,553 124.00 GLD101231P00124000 3.14 0.00 2.76 2.84 10 287 125.00 GLD101218P00125000 2.68 0.37 2.72 2.76 15,717 6,272 125.00 GLD101231P00125000 3.50 0.00 3.10 3.20 2 168 126.00 GLD101218P00126000 3.05 0.50 3.05 3.20 135 2,001 126.00 GLD101231P00126000 4.00 0.00 3.50 3.65 1 27 127.00 GLD101218P00127000 3.40 0.60 3.50 3.60 30 1,197 127.00 GLD101231P00127000 4.00 0.40 3.95 4.05 10 65 128.00 GLD101218P00128000 3.95 0.55 4.00 4.10 110 1,841 128.00 GLD101231P00128000 4.80 0.00 4.40 4.55 6 6 129.00 GLD101218P00129000 4.45 0.65 4.50 4.60 1 751 129.00 GLD101231P00129000 5.40 0.00 4.95 5.05 10 70 130.00 GLD101218P00130000 4.95 0.55 5.05 5.15 27 1,180 130.00 GLD101231P00130000 6.15 0.00 5.50 5.60 96 207 131.00 GLD101218P00131000 5.60 0.70 5.65 5.75 10 94 132.00 GLD101218P00132000 6.85 0.00 6.25 6.40 4 35 133.00 GLD101218P00133000 7.90 0.00 6.90 7.05 14 51 134.00 GLD101218P00134000 9.20 0.00 7.65 7.75 10 200 135.00 GLD101218P00135000 14.60 0.00 8.35 8.50 0 65 136.00 GLD101218P00136000 17.80 0.00 9.05 9.30 0 10 138.00 GLD101218P00138000 18.86 0.00 10.65 10.90 0 2 139.00 GLD101218P00139000 15.35 0.00 11.45 11.75 0 46 140.00 GLD101218P00140000 14.65 0.00 12.30 12.60 1 369 140.00 GLD101231P00140000 24.25 0.00 12.65 12.90 0 6 142.00 GLD101218P00142000 25.20 0.00 14.15 14.35 0 10 144.00 GLD101218P00144000 29.00 0.00 15.95 16.20 0 10 147.00 GLD101218P00147000 29.75 0.00 18.75 19.00 0 10 149.00 GLD101218P00149000 33.10 0.00 20.65 20.90 0 18 150.00 GLD101218P00150000 30.72 0.00 21.60 21.85 0 72 151.00 GLD101218P00151000 35.55 0.00 22.50 22.80 0 13 152.00 GLD101218P00152000 24.70 0.00 23.55 23.80 100 100 155.00 GLD101218P00155000 35.80 0.00 26.45 26.70 0 1 160.00 GLD101218P00160000 54.50 0.00 31.40 31.65 0 10

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