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
Commitment of Traders
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 Oct21 GC 1790 1760 Bear Put spread shown in the 2nd column above as a popular spread.
Enlarge by right clicking mouse over each image and select 'open in a new tab'
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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.
Calendarized Fly
Position earns is the market moves in a range and can be adjusted. It has positive time decay and benefits from rise in implied volatility.
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