ACE Gold - Jan 04, 2021

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


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Trade Options on Futures

Gold * Directional & Neutral Positions

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Gold


 

Term Structure

gc term


Volatility

gc optv

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

gc weekly

gc daily

gc prices


* Tip: Click here on enlarging images


Strategies

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.

Calendar Call Fly

The structure has positive time decay and positive Vega if gold prices were to rise with increase in volatility.

gc cal.fly

calc call.calendar

Strategy Target Range

gc cal.fly.target

VSwap Bearish

WBelow is a structure with positive time decay where changes in implied volatility would have a negligible impact on the position.  The ratio of theta to vega starts as half and eventually doubles over time.  Initially, it would take 2 days of time decay to negate any adverse change in implied volatility.

gc vswap bearish

calc vswap

Strategy Target Range

gc vswap bearish target


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