Today’s tickers: CAH, GLD, DOW, MA, FXI, NTAP, AET, STI & SLV
GLD – Bullish option traders dominated the January 2010 and 2011 contracts on the gold ETF today amid a rally of less than 1% to $96.39. The nearer-term January 2010 contract attracted one trader who appears to have established a covered call by selling 15,000 calls for a hefty premium of 5.80 each at the January 110 strike price. This position allows him to effectively purchase the underlying shares for $90.59 because of the premium he has received for writing the call options. He is now long the stock and short the calls. The short call position provides an exit strategy to the trader who will have realized gains of 21% if the shares are called from him by expiration next year. Another GLD-bull extended optimism one year further and chose to sell 8,000 puts short at the January 2011 95 strike price for a sweet premium of 13.98 per contract. The investor receives the rich premium…