Gold and Silver Forget Greece, Eyes On the Options
Commodities / Gold and Silver 2015 Jun 23, 2015 - 10:04 AM GMTBy: Dr_Jeff_Lewis
"Real consumption expenditures have yet to show signs of a significant pickup from a slowdown in winter."
NY Federal Reserve, US Economy In a Snapshot, June 2015
Today was certainly interesting.
Gold was hit fairly hard on the news that there is a 'deal with Greece.'
Stocks rallied, but then gave up quite a bit of it in the close.
And silver never really moved except for a little fakeout and then trended higher. What is up with that?
I think at least part of the reason is the huge open interest for gold in August. And the expectations of a China announcement in the Autumn about their official holdings.
The structure of the options contracts is rather interesting as well. There are quite a few option contracts in gold that are structured around the 1200+ level for the July 2015 calls as shown below.
I didn't see today as a fundamental move as much as a 'technical trade.' The Bucket Shop will have its due.
By Jesse
http://jessescrossroadscafe.blogspot.com
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