Put OptionsA Put option gives the owner the right, but not the obligation to sell the underlying asset (a commodity or futures contract) at the stated strike price on or before the expiration date. In other words the owner of the Put option can sell the underlying asset to the seller of the option at the strike price. Like with a Call option the buyer must pay a premium to have this privilege and this premium is the gold options trade puts calls price kong the buyer is liable for and the most they could lose.
As a buyer of Put options we hope the commodity falls in price because this will increase the value of the Put option, allowing us to sell the option later for a higher price than we paid for it. Buy gold options to attain a position in gold for less capital than buying physical gold or gold futures. Believe the mini account forex managed rx of gold will rise. Buy a gold call option. A call option gives the right, but not the obligation, to buy gold at a specific price for a certain amount of time (expiry).
The price you can buy gold at is called the strike price. Settlement prices on instruments without open interest or volume are provided for web users only and are not published on Market Data Platform (MDP). These prices are not based on market activity. Example: Long Gold Call OptionYou observed that the near-month Gold options trade puts calls price kong Gold futures contract is trading at the price of JPY 2,518 per gram.
At this price, your call option is now in the money. Gain from Call Option ExerciseBy exercising your call option now, you get to assume a long position in the underlying gold futures at the strike price of JPY 2,500. This means that yGold options are option contracts in which the underlying asset is a gold futures contract.The holder of a gold option possesses the right (but not the obligation) to assume a long position (in the case of a call option) or a short position (in the case of a put option) in the underlying gold futures at the strike price.This right will cease to exist when the option expire after market close on expiration date.
Gold Option ExchangesGold option contracts are available for trading at New York Mercantile Exchange (NYMEX) and Tokyo Commodity Exchange (TOCOM).NYMEX Gold option prices are quoted in dollars and cents per ounce and their underlying futures are traded in lots of 100 troy ounces of gold.TOCOM Gold options are traded in contract sizes of 1000 grams (32.15 troy ounces) and their prices are quoted in yen per gram. By doing this we are effectively buying call options on gold itself.
This is a great buying opportunity in gold, BUY. Footnote: Silver is also a great buy, and we purchased more stock in Silver Wheaton today. Please click here to read details. These are fast changing times and its essential that you stay up to date with what is going on in the market.