Bill,
On July 16 I published "COMEX GOLD OPTION OPEN INTEREST SIGNALS BIG GOLD MOVE"
http://www.lemetropolecafe.com/pfv.c...
What is astonishing is that with only 4 trading days left in the August Call Contract the open interest has only gone down by 1259 contracts to 73,596. Also the Call options in the money all the way up to $940 have only dropped by 714 contracts to 28,540. That means in-the-money options are not being exercised with 4 days to go and this is a huge OI! The Put OI has gone up by 814 contracts to 71,977. Puts in-the-money all the way to $940 have also increased by 648 contracts but only stand at 9187…which means a 3 to 1 ratio betting on gold going up in the next 4 trading sessions.
Meanwhile in the DEC 08 contract Calls increased by 1108 contracts to a massive 126,073 contracts while Puts increased only by 387 to 71,442 contracts making Calls outnumber Puts by 1.8 to 1. Currently 29,848 Call contracts are in the money in DEC08 while only 9152 Puts are in the money making Calls in the money outnumber Puts in the money by 3.3 to 1.
I consider smart money is the major player in the option arena so this structure looks like a play that strongly anticipates much higher gold prices …and soon.
Cheers
Adrian
