iStock_000002530720XSmall Gold – Options Report – July 21, 2010

FMX | Connect (Reported 7/21/2010)

The following is a report of Gold Option’s activity in the Over-The- Counter and Exchange traded venues. Information is compiled and summarized below.











Daily Recap:

Put buying continues to trickle in the short dated options but not as urgently as it did last week. Volatility continues to soften in the rally, and stabilize in the selloff suggesting trapped longs in the market. The market is beginning to focus on August expiration. We expect open interest to act as a magnet in the 1200 area.  Below 1995 we’d be be concerned about an 1180 pin. There was more liquidation in Jun 11 and December 11 this time in straddle form. The speculative funds are beginning to capitulate.

 


ATM Volatility Curve:

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Technical Recap:

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Volatility Smile:

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***From NYMEX Settlement

 

Significant Activity:

1.  Q10 1200 C.

2.  U10 1150 P.

3. Z10  2000 C.



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