You don't want to read the actual article because you love your braincells.
So here's the summary:
And selected commentary:
Yesterday was options/future settlement and a bazillion in the money options got converted in to futures contract longs.
So them bad ass motherfuckers betting on the rise in the price of gold now gots variation margins to deal with, we wants some of that cash, boys.
Slam 'em down.
Typical in the money options to futures being punished by the shorts...
- I'm waiting for the tech analysts to come in here and say it's good for Gold because the paper price touched some mysterious level they just made up
- Of course since yesterday was Options Expiry, and since it is traditional to smack those whose options were converted into futures contracts in the face, this is not unexpected. In fact I was expecting it and just made some nice money.
- It was comex option expiration yesterday and gold mini expiration today. This is normal activity as traders close positions. The turbulence will end by tomorrow and likely turn up as new positions are established.
- Did silver really trade 8,240 contracts between 13:20GMT and 13:21GMT today ?
- 21k contracts in 5 minutes.. really? couldn't work out of that order?