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) 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.