GC futures and options

Discussion in 'Commodity Futures' started by UVXY20, Jan 31, 2024.

  1. UVXY20

    UVXY20

    Cautious guy here, usually just trading ES, NQ. But something caught my eye on Gold, and I know I can't be analyzing this correctly.

    Using IB, I see I can buy the GC futures, Feb 27th expiration, and basically do an options arbitrage with tomorrow's (and I assume other days') expiring options.

    For example, go long GC, sell the ATM 1DTE calls for like 27 and buy the 1DTE ATM puts at 6. There has to be a catch here, no? I mean what happened to put call parity? It's never out of whack this much, or is it?

    IB is giving me warnings about being in the delivery window, too. But I have 27 days, right?

    So, what don't I know?
     
  2. CannonTrading_Ilan

    CannonTrading_Ilan Sponsor

    Feb gold are passed first notice day and longs can be assigned delivery notice. The March options are based off the April gold which is now the front month.
     
    NorgateData and MarkBrown like this.
  3. maxinger

    maxinger


    Very very few traders trade the GC G contract. It is expiring soon.

    The most active contract is now GC J contract.


    Don't just check how many days to expire.
    Instead, check which is the most active contract.