GOLD COMEX OPTION STRUCTURE INDICATING MASSIVE PROBLEMS FOR THE GOLD SHORTS
By Adrian Douglas
On July 16 I published an article entitled "Comex Gold Option Open Interest Signals Big Gold Move "
I made a further update of this article in the July 22 Midas column at www.lemetropolecafe.com.
I remarked on how unusual it was that with only four trading days to go to expiry of the AUG08 Comex Gold Call options that a massive in-the-money open interest still remained despite gold having been savagely been brought down from $971 on July 15 to $948 on July 22. One would have expected with such a brutal drop the Call option holders would have cashed in their chips before their options expired worthless or significantly devalued. I suggested that these sophisticated investors must either know something or anticipated something. With now only one trading day left in these options the plot thickens. Gold has now been taken down to $928 yet only 1,230 contracts in-the-money have been sold since July 22 ! There still remain 21,796 contracts in the money. The total OI is a massive 71,308 contracts.
