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Gold Options Specifications

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GOLD

Gold Options Contract Specifications

The gold contract specifications tell you how the gold options trade, not how to trade gold options. Before you consider opening a commodity options account, you should consult with a licensed commodities broker.

 

GOLD OPTIONS

Trading Unit

One COMEX Division gold futures contract.

Price Quotation

U.S. dollars and cents per troy ounce.

Trading Hours (All times are New York time)

Open outcry trading is conducted from 8:20 AM until 1:30 PM.

Electronic trading is conducted via the CME Globex® trading platform from 6:00 PM Sundays through 5:15 PM Fridays, Eastern Time, with a 45-minute break each day between 5:15 PM and 6:00 PM. Off-Exchange transactions can be submitted solely for clearing to the NYMEX ClearPort® clearing website as an exchange of futures for swaps (EFS) or exchange of futures for physicals (EFP) transaction until 5:15 PM, Monday through Friday, and the day preceding a holiday.

Trading Months

The nearest six of the following contract months: February, April, June, August, October, and December. Additional contract months – January, March, May, July, September, and November – will be listed for trading for a period of two months. A 60-month options contract is added from the current calendar month on a June/December cycle.

The options are American-style and can be exercised at any time up to expiration. On the first day of trading for any options contract month, there will be 13 strike prices each for puts and calls.

Minimum Price Fluctuation

$0.10 (10¢) per troy ounce ($10.00 per contract).

Maximum Daily Price Fluctuation

No price limits.

Last Trading Day

Expiration occurs on the fourth business day prior to the underlying futures delivery month. If the expiration day falls on a Friday or immediately prior to an Exchange holiday, expiration will occur on the previous business day.

Exercise of Options

Until one hour after the contract market close, New York time, on any business day for which the options contract is listed for trading. On expiration day, the buyer has until 4:30 PM, New York time, to exercise an options contract.

Strike Prices

$10.00 per ounce apart for strike prices below $500, $20.00 per ounce apart for strike prices between $500 and $1,000, $50.00 per ounce apart for strike prices above $1,000. For the nearest six contract months, strike prices will be $5.00, $10.00, and $25.00 apart, respectively.

Margin Requirements

Margins are required for open short options positions. The margin requirement for an options purchaser will never exceed the premium paid.

Trading Symbol

OG

Click here to contact a commodities broker with experience in the gold market.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. The risk of loss in trading can be substantial. This material has been prepared by a sales or trading employee or agent of Van Commodities, Inc. and is, or is in the nature of, a solicition. This material is not a research report preparfed by Van Commodities, Inc. Research Department. Please view our Risk Disclaimer.

 
© 2011 Van Commodities, Inc. All Rights Reserved