Steve Sosnick's Gold ETF Trade

Steve Sosnick, the chief options strategist at Interactive Brokers, spoke on Bloomberg Markets about an options strategy in SPDR Gold Trust (ETF) (NYSE: GLD).

He thinks that it would be a good idea to buy the June 121/123 call spread for $0.50 as a hedge for a potential geopolitical risk and a possible further weakness in the U.S. dollar. Sosnick named employment numbers, GDP and the next Fed meeting as potential catalysts that could push gold higher. The trade breaks even at $121.50 and it can maximally make a profit of $1.50, if SPDR Gold Trust (ETF) jumps to $123 or higher at the June expiration.