One investor is using the iShares Gold exchange-traded fund in looking for upside in precious metals.
optionMONSTER's Heat Seeker tracking system detected the purchase of 2,000 December 16 calls in the IAU for $0.65. Volume was more than quadruple existing open interest in the strike.
The fund is currently at $16.49, down 0.30 percent in morning trading. That means the calls are in the money, so they will closely track movements in the underlying share price.
IAU is thinly traded compared with the much more popular SPDR Gold Shares ETF, which saw bullish action of its own on Wednesday. The main difference between them appears to be price: IAU is cheaper because each share represents about 0.01 ounce of gold, while the GLD tracks 0.10 ounce.
Calls outnumber puts in IAU by a bullish 140-to-1 ratio so far today, according to the Heat Seeker.
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