Gold Option

Filed Under » , , , ,
Dictionary Says

Definition of 'Gold Option'

An option to buy or sell gold bullion at a future date at a set price. The date (delivery date), quantity and price (strike price), are all predetermined. The option is just that, an option, and is therefore not an obligation on the part of the investor to either buy or sell the gold.
Investopedia Says

Investopedia explains 'Gold Option'

An option is similar to a futures contract in that the price, date and amount are preset for both. The main difference between the two is that a futures contract is an obligation, or promise, made by the investor to uphold the contract whereas an option is not obligation.

Related Definitions

Search results for

'Gold Option'

  • Options On Gold And Silver ETFs

    http://www.investopedia.com/articles/exchangetradedfunds/09/options-gold-silver-etfs.asp
    ... Playing a Rise in the Price of Gold Using Call Options Let's look at a bullish
    option trade using options on the ETF ticker symbol GLD. ...

  • Getting Into The Gold Market

    http://www.investopedia.com/articles/basics/08/gold-strategies.asp
    ... is based on the current value of gold, the downside to options is that the investor
    must pay a premium to the underlying value of the gold to own the option. ...

  • All That Glitters Is NOT Gold

    http://stocks.investopedia.com/stock-analysis/2010/All-That-Glitters-Is-NOT-Gold-GLD-SLV-PALL-PGM-PLTM0505.aspx
    Gold is not the only precious metal option for investors.
    Take a look at palladium, platinum and silver. ...

  • Which Gold ETF Should You Own?

    http://stocks.investopedia.com/stock-analysis/2011/Which-Gold-ETF-Should-You-Own-GLD-IAU-SGOL-GDX-GDXJ1017.aspx
    ... For retail investors, the iShares Gold Trust (NYSE:IAU) may be another
    attractive option, because of the lower expense ratio. The ...

  • Using The Pullback In Gold

    http://stocks.investopedia.com/stock-analysis/2012/Using-The-Pullback-In-Gold-GLD-GDX-GDXJ-RGLD0109.aspx
    ... of some possible leverage and want to gain exposure to the companies that get the
    metal out of the ground, there is the option of the gold mining stocks. ...

  • The Secret Way To Play Gold

    http://stocks.investopedia.com/stock-analysis/2010/The-Secret-Way-To-Play-Gold-SLW-RGLD-GLD-SGOL0406.aspx
    ... Certainly, buying and storing physical gold bars or coins is an option. ...
    The third option for investors is to choose gold miners. ...

  • Trading The Gold-Silver Ratio

    http://www.investopedia.com/articles/trading/09/gold-silver-ration.asp
    ... involves a sort of arbitrage, which involves the purchase of puts on gold and calls
    on ... The risk here is the time component of the option eroding any real gains ...

  • 3 Great Equity Market Leading Indicators

    http://stocks.investopedia.com/stock-analysis/moneyshow/3GreatEquityMarketLeadingIndicators.aspx
    Factors like option volatility, volume, and price action in gold ETF GLD combine
    to act as a solid leading indicator for the equities market, explains one ...

  • Make Your Portfolio Safer With Risky Investments

    http://www.investopedia.com/articles/financial-theory/08/reduce-risk.asp
    ... like buying insurance on your stock, and the cost of your put option is the ... of bank
    stocks and utilities are considered relatively safe, whereas gold and gold ...

  • Cutting Edge Options Trades: The Zero-Premium Hedge

    http://www.investopedia.com/articles/optioninvestor/09/zero-premium-hedge.asp
    ... for $2.90. At the same time, you sell one GDX (gold stock ETF) 44 call
    option for $2.90 (the ETF is trading at $38.50. The trade ...

Related Articles

Partner Links