ACE Gold - May 06, 2019

Below is an illustration trading futures options on Gold.  Our post shows bullish and bearish positions using a combination of call and put options.


Trade Options on Futures

Gold * Directional & Neutral Positions

Get your copy of Paul Forchione's book, "Trading Calendar Spreads".  Learn techniques from a professional options trader to manage risk while speculating on futures markets.

Calendar Spreads.small

 

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cme larry

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Term Structure

gc term


Volatility

Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report. 
Ask about the Weekly Option's Report for more information or watch our video.

gc vol


Notes:

Contract Size - 100 ounces.

Tick Size:  Outright: dollars and cents with 0.10 points=$10

Trading Hours: CME Globex: Sunday - Friday 6:00 p.m. - 5:00 p.m. Eastern Time (CST).

* Tip: Click here to read a helpful tip about Gold futures and options


Gold

Below are weekly & daily charts for reference.

gc weekly 05 06

gc daily 05 06

* Tip: Click here on enlarging images


Strategies

Below is the starting position for an calendar spread. It allows for time to adjust the spread structure if necessary as price moves within a reasonable range of daily volatility.  Last week I illustrated a bias to the upside while this position starts delta neutral and could be adjusted either way.

The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.

gc calendar