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View Full Version : The second-most widely held option gives holders the right to buy gold at $2,000


Threeggg
11-22-2010, 08:44 PM
Is that right ?
Bloomberg said so today ?
where are these traded ?

Investors in options on Comex gold futures are anticipating the rally will continue. The second-most widely held option gives holders the right to buy gold at $2,000 by November 2011.

http://www.bloomberg.com/news/2010-11-22/soros-gold-bubble-expanding-as-etps-hold-9-years-of-u-s-output.html

threeggg

misericordia
11-23-2010, 12:13 AM
So what's the most held option??? gr8 article.

Scottj88
11-23-2010, 12:55 AM
Lol... yes only 1650 by end of 2011... nice call

--
Good Info though... really shows how dominant this bull is gonna be

"The biggest problem is there is to much demand" can only cause my mouth to drop....:eek:

This is going to be coming MUCH sooner rather than later...

About AG
11-23-2010, 08:56 AM
Is that right ?
Bloomberg said so today ?
where are these traded ?

Investors in options on Comex gold futures are anticipating the rally will continue. The second-most widely held option gives holders the right to buy gold at $2,000 by November 2011.

threeggg

That is correct.

For June, 2011, though, the $2,000 call is the most widely held (14,667 of 29302). The next highest is the $3,000 call!

Part of that is because the closer the month, and the higher the price, the cheaper the option is. The $2,000 call options for June, 2011 are 1/10 the price of $1,500 call options for the same month. If my calculations are correct, the value of the $2,000 call options for June, 2011 is only about $6M. There are 8,962 contracts for $1,500, but valued at about $35M. So if you have a set amount of money to spend, you can buy lots of contracts ("open interest") cheap, or a handful of contracts expensively.

jackrabbit
11-23-2010, 09:16 AM
That is correct.

For June, 2011, though, the $2,000 call is the most widely held (14,667 of 29302). The next highest is the $3,000 call!

Part of that is because the closer the month, and the higher the price, the cheaper the option is. The $2,000 call options for June, 2011 are 1/10 the price of $1,500 call options for the same month. If my calculations are correct, the value of the $2,000 call options for June, 2011 is only about $6M. There are 8,962 contracts for $1,500, but valued at about $35M. So if you have a set amount of money to spend, you can buy lots of contracts ("open interest") cheap, or a handful of contracts expensively.

People sell these options because they know its easy money.