Are Gold Futures Options Profitable? It has been a while since we wrote about trading gold options. The question of whether gold futures options are profitable comes to mind as the stock market continues to climb and gold has fallen into the $1,200 range. When the market is going up gold tends to suffer and when the market takes a hit gold goes up. And, markets do not go up forever. So, gold may not remain in the doldrums forever either. In our Trading Gold Options article we recalled the predictions of the futurist Alvin Toffler and his book Future Shock. Toffler’s premise was that society is not only to change going forward but that the rate of change will progressively increase. Our premise is that this rate of change concept regarding society applies to stocks, commodities and options as well. We noted that for the options trader with sufficient capital today’s potentially volatile market provides virtually unlimited opportunity. The key to profitable gold trading is often the options market. So, are gold futures options profitable today? Chaos and the Price of Gold There are a lot of things in today’s world that could go really bad. The civil war in Ukraine, the Boko Haram terrorists in Nigeria, Islamic State militants in Iraq and Syria and the lingering issue of Iran developing nuclear weapons could all or singularly get a lot worse. The Ebola epidemic in West Africa will get a lot worse before it gets better. And, if the virus mutates it could become a global issue. Any of these things going from bad worse could drive up the price gold. But do you really want to go out and buy gold bullion today? What if things get better and the US economy continues to improve? This is what happened in the early 1980s when gold peaked at $800 an ounce and then fell to $200 for nearly twenty years! Gold futures options could be profitable because in buying calls on gold futures one has a limited risk equal to the price of the options contract and a potentially unlimited upside potential. The point is to buy calls to lock in opportunity in case gold goes up again. Are Gold Futures Options Profitable? The premium of a gold future call option goes down as the strike price goes up. For a strike price substantially higher than the current market price a trader could potentially get a call option on gold futures for a few dollars a troy ounce. If things were to go badly in West Africa, Ukraine and Iraq all at once gold could find itself back at in the $1,900 range where it was a couple of years ago. A call contract for 100 ounces of gold bullion at$1,250 would then be worth $650 x 100 = $65,000 on an investment of a few hundred dollars. Are gold futures options profitable? They are when the trader anticipates a big hike in the price of gold! There are many profitable options strategies with gold which could also be applied to gold mining stocks and gold ETFs as well as gold bullion futures.

1. By: www.Options-Trading-Education.com

2. It has been a while since we wrote
about trading gold options.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

3. The question of whether gold futures
options are profitable comes to mind as
the stock market continues to climb
and gold has fallen into the $1,200
range.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

4. Before We Continue…
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5. When the market is going up gold
tends to suffer and when the market
takes a hit gold goes up.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

6. And, markets do not go up forever. So,
gold may not remain in the doldrums
forever either.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

7. In our Trading Gold Options article we
recalled the predictions of the futurist
Alvin Toffler and his book Future
Shock.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

8. Toffler’s premise was that society is not
only to change going forward but that
the rate of change will progressively
increase.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

9. Our premise is that this rate of change
concept regarding society applies to
stocks, commodities and options as
well.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

10. We noted that for the options trader
with sufficient capital today’s
potentially volatile market provides
virtually unlimited opportunity.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

11. The key to profitable gold trading is
often the options market. So, are gold
futures options profitable today?
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

12. Chaos and the Price of Gold
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

13. There are a lot of things in today’s
world that could go really bad.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

14. The civil war in Ukraine, the Boko
Haram terrorists in Nigeria, Islamic
State militants in Iraq and Syria and the
lingering issue of Iran developing
nuclear weapons could all or singularly
get a lot worse.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

15. The Ebola epidemic in West Africa will
get a lot worse before it gets better.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

16. And, if the virus mutates it could
become a global issue.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

17. Any of these things going from bad
worse could drive up the price gold. But
do you really want to go out and buy
gold bullion today?
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

18. What if things get better and the US
economy continues to improve?
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

19. This is what happened in the early
1980s when gold peaked at $800 an
ounce and then fell to $200 for nearly
twenty years!
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

20. Gold futures options could be
profitable because in buying calls on
gold futures one has a limited risk
equal to the price of the options
contract and a potentially unlimited
upside potential.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

21. The point is to buy calls to lock in
opportunity in case gold goes up
again.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

22. Are Gold Futures Options
Profitable?
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

23. The premium of a gold future call
option goes down as the strike price
goes up.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

24. For a strike price substantially higher
than the current market price a trader
could potentially get a call option on
gold futures for a few dollars a troy
ounce.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

25. If things were to go badly in West
Africa, Ukraine and Iraq all at once gold
could find itself back at in the $1,900
range where it was a couple of years ago.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

26. A call contract for 100 ounces of gold
bullion at$1,250 would then be worth
$650 x 100 = $65,000 on an investment
of a few hundred dollars.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

27. Are gold futures options profitable?
They are when the trader anticipates a
big hike in the price of gold!
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

28. There are many profitable options
strategies with gold which could also
be applied to gold mining stocks and
gold ETFs as well as gold bullion
futures.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/

29. As always sit out a trade if you do not
understand it and always do your own
home work and do not rely on tips.
By: http://www.options-trading-education.com/24088/are-gold-futures-options-profitable/