Traders are actively monetizing upside potential in the Gold Trust ETF (GLD), according to recent data and analysis from Spotgamma. The traders’ strategies involve reducing call skew, which suggests they are selling calls or buying puts. This move is supported by data from FlowPatrol showing significant call sellers in GDX, a big 40k put roll, and multiple GLD call rolls.

The analysis highlights a key gamma strike level at 330 in GLD, where there are virtually no positions above this level. This suggests that traders expect the price of gold to move up to this level but have little expectation of a sudden move above it. By selling calls and buying puts, traders can monetize their upside potential while also hedging against any potential downside risks.

The reduction in call skew is a significant development, as it indicates that traders are becoming more bearish on the price of gold. This could be due to various factors, such as a strengthening US dollar or increased geopolitical tensions. However, the data also suggests that traders are still optimistic about the long-term prospects of gold, given the continued demand for the metal in various industries and investment vehicles.

The latest developments in GLD trading suggest that traders are actively monetizing their upside potential while also hedging against any potential downside risks. The reduction in call skew and the presence of big GDX call sellers and a big 40k put roll indicate a shift in market sentiment, with traders becoming more bearish on the short-term price of gold but still optimistic about its long-term prospects.