Gold prices have plunged nearly 7% since peaking above $1,160 an ounce in mid-January. The malleable metal is now trading just above $1,075 to $1,080 an ounce, an area that has provided a floor for gold prices since November 2009. Given today's options activity on the SPDR Gold Trust (GLD: sentiment, chart, options) exchange-traded fund (ETF), it appears that at least one options trader is betting that the precious metal will rebound from this support level.

While digging through GLD's options activity, I ran across a block of 10,000 GLD March 120 calls marked "spread." This block traded at 11:11 a.m. Eastern time on the American Stock Exchange (AMEX), for the bid price of $0.30. The second half of this spread took place on GLD's March 112 call, where 10,000 contracts traded at the same time on the same exchange for the ask price of $1.15. This block was also marked "spread." Given this data, it would appear that we are looking at a vertical call spread, more commonly known as a debit spread, on the SPDR Gold Trust. This options strategy is also known as a long call spread, or a bull call spread