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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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.
Here's an illustration of a ratio spread May21 1850/1925 Bull Call spread shown in the 2nd column above as a popular spread.
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Strategies
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Here are some alternative strategies to above.
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.
Buttefly
Position earns is the market moves in a range. It has positive time decay.
Vertical Swap Puts
Position earns is the market moves directionally bullish. It has positive time decay with additional profitability from an increase in implied volatility.
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