Question re: Gold Futures comment on MRCI quote site

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Can anyone decipher the below quote from http://mrci.com/qpnight.htm?

"Special gold options link: http://www.mrci.com/special/gold.htm On 9/28/99, somebody bought approximately 60,000 December gold 390 calls. On 10/21/99, there are approximately 162,692 Dec calls between the 260 and 400 strike prices. These options all expire on 11/12/99. Gold's implied volatility has traded at all-time highs over the last month and the current open interest is close to all-time highs."

Thanks!

-- Diane (DDEsq2002@juno.com), October 21, 1999

Answers

And your point is........??????

Mine would be smart money sells options. How ya gonna figure buying call options 85 cents out of the market with 3 weeks left? or can I assume they were bought 2 weeks ago on the run up in which case why comment on it?

There's been more money pissed down a hole buying options than any other errant investment game. If you don't have enough market smarts and/or capitalization to play the futures or sell high vol options- then don't play.

Given recent market action, gold vol and open interest should be up at lofty levels.

-- Downstreamer (downstream@bigfoot.com), October 21, 1999.


As the mrci link mentions, on Sept 26, several European central banks made an announcement regarding their intentions with respect to certain gold actions. Many speculators therefore anticipated a short squeeze, which did occur, and among other actions, bought lots of Dec calls.

One problem with short squeezes is that you cannot precisely predict their quantitative effects.

Since then, the squeeze appears to have settled quite a bit. Some speculators have expressed expectations of gold prices continuing to escalate rapidly, but those expectations have not been supported by recent trading activities. To put it mildly, gold prices in recent days suggest that those who bought Dec 390 options may be disappointed.

While some people have expressed great confidence that gold prices may be expected to turn around quickly and rapidly rise much higher than they have been recently, at this time there is no solid evidence that such confidence is realistic.

We shall see what we shall see, and it would seem that we shall see some of it in less than one month. Good luck.

Jerry

-- Jerry B (skeptic76@erols.com), October 22, 1999.


Thanks for your comments. I didn't buy any options. I just check gold prices at the MRCI page and when they posted something I didn't understand I was hoping someone here could explain. Thanks.

-- Diane (DDEsq2002@juno.com), October 22, 1999.

For the spot price of gold:
http://mrci.com/qpnight.htm
http://www.kitco.com/gold. graph.html

For the spot price of silver:
http://www.kitco.com/sil ver.graph.html

For the spot price of platinum:
http://www.kitco.com/p latinum.graph.html

For U.S. Markets and stock quotes:
http://finance.yahoo.com/?u

For Major World Indices:
http://finance.yahoo.com/m2?u

Sincerely,
Stan Faryna

Got 14 days of preps? If not, get started now. Click here.

Click here and check out the TB2000 preparation forum.



-- Stan Faryna (faryna@groupmail.com), October 22, 1999.

See thread:

Question re: Gold Futures comment on MRCI quote site

Jerry

-- Jerry B (skeptic76@erols.com), October 23, 1999.



Oops! Put that link in the wrong thread.

Jerry

-- Jerry B (sketpic76@erols.com), October 23, 1999.


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