The Case for Buying Gold Options

Buying options has been deemed, "a sucker play," by many experienced traders who prefer to be on the short side of the market. The story of selling options when volatility is high has been told many times, but Errol and Frank make the case for buying options when volatility is low. They use Gold ETF (GLD) options to show when you might attempt to go buy a strategy like the straddle - IV Rank under 10% - and they rope in futures options on Small Precious Metals Futures (SPRE) to pay and even lower price.

The guys conclude with a way to finance their long option trade with short options in a similar market. Learn about the case for long options and see if Errol and Frank's cross-product long-short option strategy might work for you.

0:05 The Case for Buying Gold Options

2:05 Gold Volatility has Returned to its Lows

2:20 Both Gold IV Rank and IV are Low

2:35 SPRE Options are also Low IV

4:20 A Trade Idea in Gold

Sign up to start receiving free analysis on everything from stocks and bonds to commodities and foreign exchange.