Gold Options Quotes – What To Pay Attention To?

Gold Options QuotesGold options quotes charts are used as the foundation for gold options trading giving all players a clear picture what options are currently trading for with precise fluctuations. Opposed to gold futures that are traded in the ounces of gold, gold options are traded in dollar amounts. Buying a gold option merely gives you a right to buy or sell a gold contract before gold options expiration dates occur. If you do not exercise your option, the money you put into buying it is basically wasted.

There are two main gold options quotes charts for call options and for put options. Call options are usually purchased by gold investors with a bullish attitude believing that gold prices are going up. On the other hand, put options are exercised by bearish traders that firmly believe that gold prices are going downward.

In layman’s terms, you can look at gold options quotes like a whimsical price list reflecting the current positions for call and put options. These gold options quotes charts could be found in major financial newspapers or downloaded for free from many gold futures trading websites. Normally you will be able to see previous day’s gold options quotes that show a range of strike prices with call and put options prices and the expiration month. The option price represents a premium a buyer of the option has to pay to the seller on top of a brokerage fee in order to acquire this right that could be exercised in the future.

Reading gold options quotes charts might not be easy at the beginning if you are just starting out in the futures market. But overtime it will become your second nature.

Gold futures and gold options quotes play a very important role in gold price prediction and are used by major financial analysts when making their prognosis.