FMX | Connect (Reported 12/01/2011)
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.
*Due to technical difficulties no graphics could be used for today’s report.
Summary
February Gold settled at $1,739.80 per troy ounce, a loss of $10.50 for the day.
Market Recap:
February Gold moved modestly lower on Thursday, failing to maintain its intraday high of 1758. Volumes were down slightly after a robust start to the week, and traders spent most of the day watching the metal trade between 1745 and 1755. The net result was volatility being offered and it concluded the day down between .5 and 1% across the term structure. January and February calls between 1750 and 1850 strikes remain some of the most popular contracts on the market, and have initiated a movement in fences towards the Call over the course of the week. That isn’t to say puts were left out in the cold: there was a large buyer of the December 2012 1200/1000 1x2 Put spread, which is a long way off in both expiration and price.
Directional Commentary:
Options: Options behavior this week has been bullish, and while today did little to bolster that effort the trend remains intact. Skew has moved towards the call, and volatility remains orderly on the rally. If Gold continues to rally towards all-time highs the market may transition back to a call skew. Conclusion: Slightly Bullish
Technical: February Gold settled down just over $10 on the day, but is trading closer to 1750 approaching the Globex close. Technically, we see today as something of a nonevent and still envision this market moving higher in the near term. The first objective for bulls is the November 17th high of 1770.5. Bears should be looking towards support at 1705, and from there near 1670. Conclusion: Slightly Bullish
Active Options
F 1800 C
G 1750/1850 Call Spread
Z 1200/1000 1x2 Put Spread
End of Day Straddles
| GC | | | |
| | Future | Bid | Offer |
| F12 | 1740 | 75 | 79 |
| G12 | 1740 | 124 | 128 |
| H12 | 1745 | 163 | 167 |
| J12 | 1745 | 202 | 206 |
| K12 | 1745 | 231 | 235 |
| M12 | 1745 | 258 | 262 |
| N12 | 1745 | 287 | 291 |
| Q12 | 1745 | 311 | 315 |
| U12 | 1750 | 335 | 339 |
| V12 | 1750 | 354 | 358 |
| X12 | 1755 | 374 | 378 |
| Z12 | 1755 | 395 | 399 |
As of 1:30 P.M.
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