GLD vs. Comex Call Options

Discussion in 'Options' started by Fastrack, Nov 28, 2010.

  1. Fastrack


    Can anyone tell me why there is such a difference between the price of a call option for $1600 gold January expiry on the GLD ETF and the Comex? It appears to be around $50/contract for the Comex and $200/contract equivalent on the GLD.
  2. GLD is a ETF which is not physical settled as futures is. Also where did you get 1600, do you mean strike price ?
  3. 1) You're comparing Granny Smith apples to Macintosh apples. They are similar but are not exactly alike.
    2) You may get "better looking" option premiums by comparing the even-month options in gold futures, ( i.e. February, April, June, August and December), to the even-month premiums of GLD. Stay out of the "odds" and October. :cool:
  4. Fastrack


    Thanks for the response. I do notice very similar premiums on the June call options. However, I still do not understand why the premiums are so different for January. I do not mind buying the call options on the GLD with a higher premium as long as I can sell them with a similar higher premium in early January. My gold call options on the both the Comex and GLD have increased substantially in value since I bought them, but I am hoping to buy more. To maximize profit is it generally better to buy gold call options on the GLD or the Comex?

    Any response you could provide would be greatly appreciated as I am new at options trading.