Gold has long been known to stir investor passions. When James Marshall found the shiny metal at Sutter's Mill in 1848, the discovery drew 200,000 people to California over the following four years.
A more recent gold rush was sparked by a persistently weak U.S. dollar. Investors are scooping up the precious metal, which has settled at record highs 12 times this month, the latest at around $1,556 Friday.
Tracking that move higher is the Market Vectors ETF Trust which is up 22 percent over the past year. But options investors in the gold miners ETF are starting to hedge their bets by buying puts.
"Gold has traded to a level where, under normal circumstances, people would cover some or all of trade," said Jim Iuorio, Director at TJM Institutional Services.
"However, in this circumstance traders elect to maintain the long position but protect themselves with puts," Iuorio added.
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