Re: Gold & Silver Options Expiration
in response to
by
posted on
Apr 27, 2010 12:56PM
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I haven't traded options so I don't know the exact procedures they follow. However the date of the options expiry for gold and silver can be found at this link. I downloaded and saved the .pdf file.
http://www.heritagewestfutures.com/downloads/futures-options-calendar.pdf
On page 2 you will note the 4/27 date for the May options.
Usually, for about a week or so going into the posted dates, the options writers do whatever they need to do to make the options expire worthless. If the market hasn't gone up much, they don't need to do much; but it often presents an opportunity to buy junior miner shares a bit more cheaply so I like to be aware of the date. Much depends on how many and what options will be "in the money" at what price. Much of what happens in the "paper" bullion market slops over into the miners. People can and do buy options on the individual miners so the two markets don't always work in lock step.
I'm just guessing but I think they wanted to keep the number below 1162 on gold as quite a few have pointed to that price as being technically important. If the price is taken out the longs will be buying and the shorts covering. So I believe that level will be defended for the day at least.
P.