Gold Options Bearish Positioning Hits Extremes: GLD Put-Call Skew Near Record
The 6-month put-call skew on GLD has risen to 1.03, near its highest since 2017, while the 3-month skew hit a record 1.19, indicating extremely crowded bearish positioning in gold options.
The put-call skew on the largest US gold-backed ETF, $GLD, has reached extreme levels, signaling that bearish positioning in gold options is heavily crowded.
The 6-month put-call skew now stands at 1.03, the highest since 2017. This metric compares the cost of put options (downside protection) to call options (upside bets). A rising skew means investors are paying more to hedge against declines than to speculate on gains. Over the past few weeks, the skew has surged by 0.13 points—the largest increase since the 2022 bear market. For context, the 10-year average is 0.90.
Meanwhile, the 3-month put skew on GLD has climbed to 1.19, an all-time high. This shorter-term measure tracks demand for downside protection; it rises when traders are willing to pay a premium to insure against losses.
The data suggests the short gold trade has become very crowded, with a notable imbalance toward bearish bets in the options market.
Source: The Kobeissi Letter