Upcoming election week should be interesting.

Another interesting date this month... November 20... Comex December gold option expiry date. As of Friday... December gold call options open interest 171k... December gold put options open interest 110k. Ratio of calls to puts: 1.6:1. What's even more interesting if the distribution of these contracts by strike price. Using $750 as more orless current 'at-the-money price... Puts have relatively even distribution across all strike prices with 52k contracts at or below $750 and 57k above $750. However, distribution of calls is far from even distribution. There are just 8k call contracts (i.e. right to buy) at or below $750 but a whopping 162k above $750... 18k at $900, 14k at $1,000, 11k at $1,050, 24k at $1,200! Option traders are clearly very bullish on gold. FYI... the relative magnitude of these open interest numbers are huge compared to 'average' monthly numbers.

Some suggest "buying out of the money call options and then buying the futures is a way in which big money can get a large gold exposure as the futures buying drives the gold price higher taking the options into the money which can then be exercised". Is this is true, open interest would indicate gold is headed much higher before November 20.

A couple of other interesting points about this is that the way that the December call open interest has remained strong throughout 2008 in the face of extreme price volatility and the almost 3 year declining trend of the Goldman Sachs TOCOM gold net short position.

Should be an interesting month for gold. Or maybe not. LOL.

red911

P.S. Beardmore weather... temperature in double digits for most of upcoming week?!... fantastic news... the longer SGX can strip and trench the more vein they will have a look at (i.e. sample) before the snow comes... and the better chance to identify 'optimal' drill targets... although I would guess by now they have more than enough drill targets to use up all of recent PP in short order... unbelievably warm for this time of year...

Today: Day: Cloudy with 70 percent chance of showers or drizzle. Wind south 20 km/h becoming light this afternoon. High 6.
Night: Cloudy. 70 percent chance of showers or drizzle early this evening. Low minus 3. Monday: Cloudy. Wind becoming south 20 km/h in the evening. High 8. Tuesday: A mix of sun and cloud. Low 9. High 14. Wednesday: Periods of rain. Low plus 4. High 11. Thursday: Periods of rain. Low 7. High 12.