Gold Market Commentary: Buyer Of 2,000 December 1,800 Calls Emerges

Tyler Durden's picture

From FMX Connect

April Gold settled at $1343.00 per 100 troy ounces, a gain of $5.80 for the day, after swinging from $8.00 up to $7.00 down and back. Volatility was unchanged in the backs and lower in the fronts.  Call Skew and Call Tails increased.
Active Options
J 1250 P trds 7.5 with futures 1000x
Z 1800 C trds 13.5-14 2000x
J 1500 C trd 1.70-2.20 1500x
Analysis: Skew firmed up today with calls being bought in December and August. Puts were sold in April, June, August and October. Volatility was roughly unchanged on the day but there is a definite change in tenor in risk reversal trading. This was in large part a reaction to a fund buying December 1800 Cs live, approx. 2000 times. Moving forward, nothing about today’s action gives a directional hint except that December calls are being bought once again.
Commentary: The market opened very strong and then washed out, looking like a trend day lower. The bounce through unchanged came on the back of the December call buying. Our guess is that call buyer was also positioning himself in futures. Whether he’s right or not, we don’t know. Right now we are sticking to our guns and don’t expect to see volatility pop until we settle above 1346 or below 1325.

ATM Volatility Curve:

Volatility Smile:

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CU1981's picture

GOLD Bitchez !!


Sorry couldn't resist ... lol

william the bastard's picture

FMX Connect posted almost exact postionings this morning. You got wet for nothing.

Tyler Durden's picture

Is your point that there is no buyer of December calls?

tmosley's picture

He has no point.  He's goldenmiddelfinger under a new pseudonym.  Just a drive by troll.

tmosley's picture

No, you can just fuck off, sock puppet boy.

ColonelCooper's picture

Wrong.  Goldstinkfinger would regail us with tales of his wealth, his book, his ex wives etc.  This dumbshit it, as you have said before:


william the bastard's picture

FMX Connect posted almost exact postionings this morning.

tmosley's picture

Learn how to read, shit-for-brains.

It clearly says "From FMX Connect" at the top of the article.

hedgeless_horseman's picture

Skew firmed up today with calls being bought in December and August. Puts were sold in April, June, August and October.

Help me out here, please.  Didn't somebody (other than the exchange) take the other side of these trades?  Couldn't one also say, "Skew firmed up today with calls being sold in December and August. Puts were bought in April, June, August and October.

Disclosure statement:  I am not a metals options trader, only a horse trader.

Bay of Pigs's picture

For the Gold Douchebags here, let me tell you, this price discovery sickens me like it did in 2003 when gold was trying to break $300, or 2004 when gold was breaching $400. 

Figure it out...we're going a lot higher.

YHC-FTSE's picture

Way off topic, but thought this might interest you:


An exchange-traded fund designed to track Egypt is open for business, and has been drawing in money, even though the Egyptian stock market remains closed amid antigovernment protests.

CU1981's picture

BTW: I won't get wet until true price discovery occurs, then I might wet on you. So watch out

Sands8oo's picture

william the bastard: whisperings in the night as once again, a fucktard speaks.

chump666's picture

from memory their was a huge offer at 1300

all markets have bubbled out.

Monkey Craig's picture

Seemingly very bullish, but do we know the identity? average volume for these contracts?

Math Man's picture

But look at the skew.

This doesn't mean shit.

Threeggg's picture

Yo !

TD, hearing rumors of the commodities (CME chicago) markets will be closed tomorrow because of the snow ! seriously ??????????

 whats the scoop ??

will there be any price discovery tomorrow ?


Threeggg's picture

They were just talking about it on Faux Business a few minutes ago !

small watcher's picture

Wasn't watching foxy news.

I'm just trying to build a joke around the line

Because of the snow, there will be no snow futures trading

but I haven't quite worked it out.

Threeggg's picture

watcher there are snow related futures/options trading on the CME = In you guessed it ! (snow accumulation derivatives) !? Huh ?

"But there is a market to trade derivatives tied to snowfall amounts"

Since last winter, the company that owns the Chicago Mercantile Exchange has offered a market for businesses and investors to trade futures and options — they also are known as derivatives — tied to the amount of snow that falls during a set time span.

Tim Andriesen of CME Group, which also runs other weather-based markets, said the snow-based derivatives have not tended to attract thrill-seeking gamblers looking to put a bet on something unpredictable — Mother Nature's roulette wheel.,0,5567024.story

Thought you were crazy eh ! ?

Fraser434's picture

Weather trading is not a new concept, Enron was one of the first to offer it.

RmcAZ's picture

Holy shit... this is retarded.

snowball777's picture

Sweet. How expensive is a snow-making machine? I wanna do a Paulson!

c-rev with a twist's picture

The Bernank can overcome the blizzard with his mouse wheel.

Drag Racer's picture

but I haven't quite worked it out.

try: '24 hour price freeze due to snow' or '24 hour snow due to frozen prices'

yabyum's picture

I thought the big Land Rovers w/ Bizzaks could make it through anything.

LongSoupLine's picture

They can, but not with latte sipping market fags driving them

Goldust's picture

Bwah ha ha ha ha!  That is exactly what I think when I see someone driving a LR/RR.  That and that wealth does not equal car-choosing smarts... (LR/RR are some of the biggest POS cars on the road.  If I had a gold eagle for every day one of my clients LR/RR was in the shop for mechanical or computer problems I would be at home with a Sheen-like brick of coke critiquing porn.)

OptionsHedge's picture

I guess the $ is going down, gold is going up, and commodities are inflating ad infinitum. Last weeks marubozu candle got snuffed out in two days. Its a pattern. $100 billlion per month.

chump666's picture

you can see that in the AUD insanity crosses, China RRR hike in Feb 2011 should do the job.

attst487's picture

"April Gold settled at $1343.00 per 100 troy ounces"
How can I get in on that deal?

mynhair's picture was only 2 calls!  I am so scroomaged!

NOTW777's picture

grains flying AH

papaswamp's picture

No kidding...after hours is going nutso..

NOTW777's picture

wheat, soybeans, etc headed back to 08 hi s

copper BO

papaswamp's picture

I whipmed out and stepped away 2 hrs ago. Waiting for a short term correction..then another big pop...or I'll be wrong and by Friday things will be out of sight.

Hephasteus's picture

Bruce was saying bond market was signalling 60 percent inflation over the next 6 months In one of his posts last month. I'd listen to him.

UncleFester's picture

I don't know...the contrarian in me screams sideways (at least) for ~6 months.  Am I  vapor-locking myself?


Hephasteus's picture

Dollars work on magic. The M2 is simply derived from price of gold. There are far far more dollars than M2 signals there are due to manipulation of price of gold which is really just manipulation of people's willingness to use it as money or percieve what it really is.

It's like having a disk duplicator store twice as much data on one disk. Only the dollar stores twice to 3 times as much wealth in each dollar.

When comex busts or slows deliver down to rediculous untennable permanent backwardation. The wealth duplicator loses it's compression and it projectile vomits all over everyone.

We go from bank closings rising at rapid pace to government closings rising at rapid pace. It all passes through people as a power rush euphoria so it lulls down at each big event. I think though India is set for market crash and revolution. Canada like america is building up a big volcanic event. The outliers have to blow and stabilize or else if they don't when america blows it will just be one big giant pool of blood and brains smeared all over the concrete.

Sideways just won't happen unless it's a timing event to reduce damage. This is all controlled sort of by pluto in capricorn. So saturn timing will schedule when the changes occur as everyone revolutionizes what government really is and how it really works. Timing has been done quite a bit and will be done quite a bit this year but it will be much more rapid and pulsy. So you can view it as sort of sideways if you think about an earthquake shaking back and forth. How awfull it get's just being defined by how much resistance government wants to generate. Things are pretty good right now but stressors are rising.

fmxconnect's picture

how does the math work on that please?

Hephasteus's picture

10 percent a month every month for 6 months.

DoChenRollingBearing's picture

Wow, a gold thread and yet I hardly understand ANYTHING of most of the above!  Below I can understand.

Fortunately Bearings are never accused of being brainy, kind of the opposite actually.  But, Bearings don't trade either, so they don't understand professional trader jargon.  Bearings just roll when they're pushed, that's about it...