$GLD bulls quadruple money

Option traders are scoring exponential gains on upside positions in the SPDR Gold Trust (GLD) again today.

On March 26, Our tracking systems detected the purchase of 4,000 September $125 calls in one print for $3.90 with shares at $124.22. This was clearly a new position, as open interest in the strike was only 1,471 contracts before that session began.

Those calls are marked at $17.33 this afternoon, 4.5 times their purchase price. The stock rose 14.35% in the same time period, underscoring how options can far outperform their underlying shares.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

It is the second winning trade in the name posted here in as many weeks.

GLD is up 0.66% to $142.03 in afternoon trading. The exchange-traded fund, which tracks the price of bullion, has rallied as investors have return to precious metals as a so-called safe haven.