How Do You Buy Gold In Options?
Private investors have two options for purchasing gold options: they can buy a secondary option on the New York Mercantile Exchange within the Commodity Exchange (COMEX) division or they can open a private account with a bullion bank, which requires a substantial minimum balance and fulfillment of all due diligence. For most investors, purchasing secondary options will be the most cost-effective method for trading in gold options. Step 1 Contact your broker or use online brokerage software to purchase a gold option. Options come in two varieties: put and call. A put option gives the holder the right (but not the obligation) to purchase gold at a particular price during the valid dates of the option. A call option gives the holder the right to sell gold. The date on an option is called the “expiration time” and the price is referred to as the “strike price.” A savvy investor will purchase a gold put option if they believe the price of gold will rise above the strike price of the option
