“For what it is worth, GLD is trading below its 50 day MA currently after trading higher than $117 just nine trading sessions ago, as Gold prices have softened in the past week or so. Given the interest in upside call options, which of course is a leveraged long motivated trade, it also makes a ton of sense for us to closely monitor the levered long Gold ETPs that are periodically popular in the space,” said Street One Financial Vice President Paul Weisbruch in a note out Friday.

Those leveraged long gold ETFs include the PowerShares DB Gold Double Long ETN (NYSEArca: DGP) and the ProShares Ultra Gold (NYSEArca: UGL).

Trading in those ETFs “has been reasonably light during the recent pullback in Gold prices, but that could change in a blink especially if the GLD call buyers turn out to be directionally correct in the short term, and we would expect potentially heavier usage of such leveraged long products if that turns out to be the case,” notes Weisbruch.

SPDR Gold Shares

Tom Lydon’s clients own shares of GLD.