ACE Gold - Sep 07, 2020

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


Trade Options on Futures

Gold * Directional & Neutral Positions

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Calendar Spreads.small

 

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Copper


Gold


Term Structure

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Volatility

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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

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* Tip: Click here on enlarging images


Strategies

Below is an illustration of a calendar spread.  This strategy has positive Vega which earns from an increase in implied volatility while being directional. 

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.

Below is a bullish calendar spread assuming volatility picks up (positive Vega) and the longer term directional trend with gold runs higher as we enter fall with potentially higher volatility as we near the election.

gc calendar bull post

Below is a bearish calendar spread supposing a short term break out to the downside.

gc calendar bear post

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