how to buy gold call options

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HOW TO BUY GOLD CALL OPTIONS By www.Options-Trading-Education.com

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Page 1: How to Buy Gold Call Options

HOW TO BUY GOLD CALL OPTIONSBy www.Options-Trading-Education.com

Page 2: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Gold has gone up fifteen percent since the start of the year.

Page 3: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Are we into another bull market for the shiny stuff?

Page 4: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

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Page 5: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

According to The Economic Times gold ETFs are seeing cash outflows!

Page 7: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

With gold prices rising 15% since the beginning of the year, the gold fund category has been the top performer.

Page 8: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

But investors are no longer interested.

Page 9: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Gold ETFs witnessed net outflows 2015-16.

Page 10: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

It seems gold funds won’t find a way back into investors’ portfolios anytime soon.

Page 11: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Says Lakshmi Iyer, CIO Debt & Head, Products at Kotak Mutual Fund, “I don’t see a quantum jump in demand for gold ETFs in the near future as gold prices have only just shot up and investors bide time before getting in.”

Page 12: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

You may wish to learn how to buy gold call options.

Page 13: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

The price of an options contract is significantly less than the price of buying gold bullion or a share in an ETF.

Page 14: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

And the premium paid to buy a call on gold is the most that a trader can lose if gold turns around and loses ground.

Page 15: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

How to Buy Gold Call Options

Page 16: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

If you would like to own gold bullion in a rising market read what Investopedia says about how to buy gold options.

Page 17: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Buy gold options to attain a position in gold for less capital than buying physical gold or gold futures.

Page 18: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Gold options are available in the U.S. through the Chicago Mercantile Exchange (CME), so if you’ve wondered how to invest in gold, here’s a shorter-term and less capital intensive way to do it.

Page 19: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Each option contract controls 100 ounces of gold.

Page 20: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

If the cost of an option is $12, then the amount paid for the option is $12 x 100 = $1200.

Page 21: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Buying a gold futures contract which controls 100 ounces requires $7,150 in initial margin.

Page 22: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Buying physical gold requires the full cash outlay for each ounce purchased.

Page 23: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

But you do not need to wait until gold call option expires and buy gold.

Page 24: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

You can simply sell your contract and pocket your profit.

Page 25: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

If you would like to profit from a rise in gold prices but not worry about ever holding gold bullion gold ETF funds allow you to buy and sell shares tied to the price of gold.

Page 26: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

And you can also buy gold call options in this way.

Page 27: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Go to NASDAQ to see the SPDR Gold Trust Option Chain.

Page 28: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Call and put options are quoted in a table called a chain sheet.

Page 29: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

The chain sheet shows the price, volume and open interest for each option strike price and expiration month.

Page 30: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

As of this writing a September 16, 2016 call sells for $11.45 for a strike price of $109.

Page 31: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

A call for a strike price of $120 for the same day is selling for $5.84.

Page 32: How to Buy Gold Call Options

http://www.options-trading-education.com/24409/how-to-buy-gold-call-options/

Open interest on the $109 strike price is 556 while open interest on the $120 strike price is 13,775. The $120 is obviously more popular.