Gold- What say you?

Discussion in 'Options' started by LEAPup, Dec 14, 2011.

  1. LEAPup


    My Step Dad called today, and is asking for help with gold. He is a former Newmont exec, and is looking to go long calls on NEM Jan 19 2013 65 strike.

    What say the rest of you options guys on this one?

    Options chain showed 19,000+ O.I (LOW volume though), and was bidding at 6.50
  2. ajcrshr


    Wait until next QE/liquidity program is announced..
  3. LEAPup


    Don't think so. Once news like that hits the street, the calls will be overpriced.
  4. Gold and oil stocks tend to have good volatility.
    Teach him how to trade :)
  5. clacy


    I'll be adding GLD shares and opening GDX calls possibly tomorrow or soon after that. I just would like to see an up day or a couple of flat days before I pull the trigger, but I feel we should be close to a short term bottom in an oversold market.
  6. IVtrader


    I think that if you have to even post to an options forum and ask the question that you don't know enough yet about how options are really priced to determine when when they are "undervalued", "evenly valued", or over priced NEVERMIND that you are asking for yet another person

    study what/how option premiums are priced first and realize that while open interest and volume are important, that there are other factors more important