| Options traders are betting gold prices have more room to fall. Last week, as gold suffered its biggest weekly decline in three years, the cost of protecting against a decline in the shiny metal became more expensive than protecting against a rise, according to Macro Risk Advisors.
Bearish put options that protect against a 10% slump in the SPDR Gold Trust over a three-month period now cost slightly more than bullish call options protecting against a 10% rise over that time. A measure of the so-called skew, which essentially subtracts the cost of the call option from the cost of the put option, turned positive last week for the first time since the beginning of the year........................................Full Article: Source
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