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Options Action: Gold Stays Hot — But Key ETF Cools Off

As the price of gold breaks through $900 an ounce Monday, the GLD exchange traded fund appears to have cooled a bit — but the ETF is still seeing options action.

Options trading in the SPDR Gold Trust was heaviest last week at the February 95 calls, as more than 35,000 went for up to $1.40. This morning, OptionMonster's tracking systems showed those GLD calls traded as high as $1.90.

The ETF had been rising sharply in the last few sessions but is nearly flat on the day, up about 0.64 percent to just over $89. The GLD had been under $80 as recently as Jan. 15 but has risen with the price of gold, which had been trading in a "pennant" pattern indicating that a break up or down was pending.

The precious metal's direction turned decidedly north last week and broke through $900 an ounce this morning. In addition to the GLD fund, that rise has been reflected in other ETFs such as the Market Vectors Gold Miners fund , the iShares COMEX Gold Trust, and the PowerShares DB Gold.

Disclosures:

We have positions in GLD and other gold-related assets.

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.

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