Now that Congress has conclusively proven that speculators have doubled the price of oil, can gold be far behind? I mean think about it, all the oil they had to buy and take off the market they have to store in their backyard refineries. Silver and Gold they barely would fill their media rooms.
OK, seriously, pretty depressed volatility in this GDX here. Yes, it's actually a basket of equities. And yes, individual stocks have seen a bit better options action.
But interesting that this whole sector has kind of left the radar as it's 24/7 energy now. 10% rally in the past week though, so maybe time to keep an eye on this space.
12 comments:
Gee, Adam, ANOTHER Gold low vol play I can mess around with...
Calendars anyone?
I am really going to have to start paying attention and getting less distract by the pictures...
Although GLD in the 20s has been bery bery good to me...(I am channeling Ozzie Guilen)...though with its vols in the mid 20 and front/back spread tighter than a constipated sphincter.
I am off to run some hypos now...
hmmm...lots of OI in GDX..at 48 and change, at the high end of its range (naturally)...even at this late date a double JUL/AUG calendar of 46 puts and 51 calls look awfully intriguing -- front back month spreads are tight tight tight, under 2%.
I bought a little gamma in AEM and.......already missed the first trade as it drifted down and then back up 2 points.
"What's the soup du jour?"
Have you touched any of the newly issues GLD options? They seem to be reasonably popular...
Verbo, I have a multi-contract calendar in GLD going right now...I have already done on roll from JUN-JUL to JUL-SEP...
This baby is tailor made for the calendar setup... nice low vols, tight front month/back months spreads
Plenty of liquidity to adjust delta and gamma by taking off or adding contracts...
I really like it...
karl k: cool...I was looking at hitting a call diagonal or something...back month ITM, near month OTM.
This could be a pretty good signal that oil is near a top, lol
http://www.youtube.com/watch?v=NdxVMBxuBDM&eurl=http://valueplays.blogspot.com/2008/05/it-may-be-time-to-sell-oil.html
I have a small GLD stock and options position, not very inspired. I'm long stock, long OTM puts and short OTM calls. Or calls that used to be OTM. Kind of a long vertical that is basically done now,
Jason: lmao. I should check, maybe we have oil here in the NY burbs.
lol and while your at it, why not plant some corn.
already done. We have a regular Field of Dreams thing going on out back, lmao.
lol, if you build it, they will come.
let us know if Shoeless Joe drops by...
will do, lol.
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