Futures Traders

Futures traders in the gold sector are like the screaming children you hear on a roller coaster. Mostly composed of overfed boys afraid the coaster might seperate from the tracks and crash or that they might actually throw up.

And yet, you have futures options for gold with forseeable strike prices trading as if they were penny stocks, while impossible strike prices with no chance of ever being filled command a massive premium.

MF Global is past, and the world didn't end, despite the uproarious splenetic goat fest it created. Dodd Frank did nothing to prevent traders from leveraging up on in-the-money calls. CME margin hikes had been ineffective at returning the genie to the lamp by rubbing it the wrong way.

There simply has to be a 100% arbitrage risk in gold, that the price might rise, not waiting for some news-driven event.

http://quotes.ino.com/options/?s=NYMEX_GC.M12.E

-F6