Trading Comments, 18 November 2012 (Posted 15h30 CET):

There may be an opportunity to add to our trading positions this week or next by buying any dips that may develop as we approach the expiration of December options. For now, I just recommend watching and waiting.

1) Long one position bought at $1679.50 on November 5, 2012. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades below $1688.00.

2) Long one position bought at $1,692.00 on November 6, 2012. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades below $1694.00.

3) Long one position bought at $1,714.10 on the Comex close on November 6, 2012. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades below $1694.00.

Silver
1) The position bought at $32.019 on the Comex close in New York on November 6, 2012 was sold the next day at $31.519. Loss: 50.0¢

2) Long one position bought at $30.945 on November 5, 2012. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades below $31.80.

3) Long one position bought at $31.25 on November 6, 2012. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades below $31.80.

Gold/Silver Ratio – Traders sold the ratio (they bought silver and sold an equal dollar amount of gold) at 54.1 on the Comex close on November 5, 2012. Stop-out point: Unwind this trade on the ratio’s first Comex close in New York above 54.6.

Comex options (options are high-risk and therefore not for everyone):

On the Comex close on November 5, 2012, traders bought the Feb’13 Comex 1800 gold call at $13.60 and the Mar’13 Comex 32 silver call at $1.474.

Long one Dec’12 Comex 2000 gold call from $54.00, the January 3, 2012 Comex close.
Long one Dec’12 Comex 1800 gold call from $59.70, the March 15, 2012 Comex close.
Long one Feb’13 Comex 1800 gold call from $44.20, the May 11, 2012 Comex close.

Long one Dec’12 Comex 40 silver call from $1.761, the January 3, 2012 Comex close.
Long one Dec’12 Comex 40 silver call from $1.635, the March 15, 2012 Comex close.
Long one Dec’12 Comex 32 silver call from $1.527, the May 11, 2012 Comex close.

Hold all these calls without any stop-out point, but sell the Dec options on expiry if in the money.

Trading and investing can be highly risky. Please read the Disclaimer.