Gold price is diving but Gold options premiums are flying. GLD is down 12% but the call options are up 300%.
The soaring volatility (refer ATR on GLD chart) contributes to increasing premiums, but the open interest is also high meaning it can’t just be volatility.
While traders are liquidating gold positions to meet margin calls, looks like they still want a ticket to gold’s future bull party.
Btw – it’s a similar story for the gold miners too…