The $2 million bet on gold rally

VIDEO2:2602:26
Options Action: Bullish bets on gold

The GLD, the ETF that tracks gold, has been on a tear — up 17 percent this year. And according to one savvy trader, the precious metal's run is far from over.

On Thursday, when bullish trades outpaced bearish ones, a trader bet more than $2 million that the gold could rally 10 percent in one month.

The trader purchased 10,000 July 125-strike calls for $2.29. Since each call option accounts for 100 shares, this a $2 million bet that the GLD will rise above $127.30 by July expiration.

The move comes as investors pile into the safe-haven assets as a number of factors like global uncertainty, the Fed and oil loom over the markets.

"Given how much it has moved just since January, just under 17 percent, you can see why risking just about 2 percent of the underline is probably the smartest way to make your bullish bets here," Optimize Advisors co-founder Mike Khouw said Thursday on CNBC's "Fast Money. "

Shares were in the red on Friday, but up 1 percent for the week.