Option Play
What is causing this silver and gold to rally big today fundamentally, is the fact that the Fed has decided to keep rates low and according to Bloomberg this is, "driving the dollar down and boosting demand for the metals as alternative investments." This sounds strange and I would love to trust it as a "Gold Bug" at heart, but this is yesterday's news-no? At any rate July silver (COMEX:SIN14) is up over $1/ounce and August gold (COMEX:GCQ14) is up over $48/ounce today.
From a technical standpoint, both silver and gold have taken out several areas of resistance in my view, given a buy signal, and turned into a
"Super-Trend" up all in one day.
Daily August gold, eSignal
Daily, July silver, eSignal
For exact details on other types of risk, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com.
About the Author
Matt McKinney is a full-service options broker at Zaner Group both buying and selling energies, metals, grains, softs, currencies and the 30-year bond market. My strategies include time frames of 45-120 days with the ability to liquidate at any time. I can be reached at mmckinney@zaner.com.
Whether you're a novice trader who wants to participate in options on futures or an experienced trader, you can also check out my blog at http://www.mmckinneyfutures.com/.
Futures and options trading involves substantial risk and is not for everyone.