#GOLD STRIKE PROFESSIONAL#

The above is more conservative as it accounts for the likelihood of terminating the trade before the initial target is hit. In our opinion, a good rule of thumb is to consider strike prices that are about 1/3 of the expected price move away from the current price – for instance, with gold at $1,000 and a target at $1,300, a reasonable strike price for a gold call option would be $1,100.

Choosing a strike price for gold (or any other asset) that is higher than the mentioned mid-point increases risk but at the same time decreases (!) profitability. Given the above, it’s theoretically most profitable to have the strike price right between the entry price and the exit (target) price. The important thing to keep in mind is that the strike price should be chosen based on the price move that one wants to profit on. In this way, the total possible loss on a given trade is smaller as there’s less money on the table. What’s our approach? We prefer to purchase out of the money options, but do so with only a very small portion of the portfolio. Still, an in-the-money option doesn’t necessarily mean that the loss is limited – one can still lose the amount invested in this trade if the price declines below the strike price and the option expires out of the money. Purchasing an in-the-money option would be less risky, but one would have to pay a much bigger premium (price) for this option, so the potential profits would significantly decrease. That’s why keeping the size of the positions small is very important in option trading. Unless the price moves higher (or lower) soon, the option may expire worthless when the time’s up (at the expiration date). In short, the more out-of-the-money the option is, the more risky it is. The rules are similar as for other assets. By definition, the price of an out-of-the-money option has no in-the-money portion. Any value above $30 that the market places on this option is time value.Īn out-of-the-money option consists entirely of time value. For example, if the price of gold is $1,080, then a $1,050 call option has an intrinsic value of $30. If the price of gold is above the strike price of a gold call option, then the price of gold minus the strike price of the gold call option represents the intrinsic value of this gold call option. Time value is the portion of an option's price that is in excess of the intrinsic value. Intrinsic value is the in-the-money portion of an option's price. The price of an option may consist of intrinsic value, time value or (in most cases) a combination of both. Likewise, an investor who has a long put option is entitled to receive money when the price of the underlying asset is below the strike price. An investor who has a long call option is entitled to receive money when the price of the underlying asset is above the strike price. In short, upon expiration, call options are worth the difference between the price of the underlying security and the strike price (the same is the case with put options, only this time you subtract the current price from the strike price).įor options that are in the money, the difference between the underlying asset's current market price and the option's strike price is a potential profit per share gained upon exercise or sale of the option.

Listed options have clearly defined rules for strike prices, contract sizes and expiration dates.

The strike price is mostly used to describe stock, index or commodity options (stock strike price, S&P 500 strike price, gold strike price etc.). Nose: Intense, forest herbs, cinnamon, notes of seeds and roots.The strike price (or exercise price) of an option is the fixed price at which the owner of the option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity. Bols Gold Strike is also called 'The Tears of the Bride', which are symbolised by the small leaves of gold. The gold can easily be drunk along with it. This liqueur bottle contains flaky pieces of real 24 K gold leaf just like the famous Goldschlager Cinnamon Liqueur. Gold Strike (also known as Gdansk Goldwater) is a cinnamon leaf gold liqueur made from a variety of imported herbs, seeds and roots with the main ingredient of orange and curacao peel. The inspiration for making Bols liqueurs goes back more than 440 years, and can be found in ancient recipes and techniques, perfected and adapted to modern tastes. Since 1575, Bols has mastered the art of distilling and mixing drinks, using high-quality natural ingredients such as herbs, spices and fruits.

#GOLD STRIKE PROFESSIONAL#

Bols Liqueur, the number 1 liqueur collection, contains around 40 unique flavours.īols Liqueurs are used by professional bartenders worldwide to make cocktails.