Trade Options on Futures
Gold * Directional & Neutral Positions
Get your copy of Paul Forchione's book, "Trading Vertical Swaps". Learn techniques from a professional options trader to manage risk while speculating on futures markets.
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).
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.
Below is a bearish calendar spread supposing a short term break out to the downside.
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