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
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HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT , THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCES RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELEY AFFECT ACTUAL TRADING RESULTS.
Term Structure
Volatility
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
* Tip: Understanding what the numbers mean when looking at Gold prices. The quotation you see is U.S. dollars and cents per $0.10 tick. Each contract you are buying or selling is price per ounce x 100 oz. A 1 tick move is $10. Notional value of $1,318.10 / oz x 100 oz = $131,810,000 USD per contract.
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Latest, Biggest, Busiest
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Below is a snapshot with what's going on in the world of options with the most actively traded spreads.
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Below is an illustration of the Apr 1740/1700 Put spread shown in the 2nd column above as a popular spread.
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Strategies
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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.
Vertical Swap Bullish
Position earns is the market moves directionally bullish. It has positive time decay with additional profitability from an increase in implied volatility..
Strategy Target Range
Put Calendar Bearish
Position earns is the market moves directionally bearish. It has positive time decay with additional profitability from an increase in implied volatility.
Strategy Target Range
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