GC futures and options

[UVXY20]

Cautious guy here, usually just trading ES, NQ. But something caught my eye on Gold, and I know I can't be analyzing this correctly.

Using IB, I see I can buy the GC futures, Feb 27th expiration, and basically do an options arbitrage with tomorrow's (and I assume other days') expiring options.

For example, go long GC, sell the ATM 1DTE calls for like 27 and buy the 1DTE ATM puts at 6. There has to be a catch here, no? I mean what happened to put call parity? It's never out of whack this much, or is it?

IB is giving me warnings about being in the delivery window, too. But I have 27 days, right?

So, what don't I know?

 

[CannonTrading_Ilan]

Feb gold are passed first notice day and longs can be assigned delivery notice. The March options are based off the April gold which is now the front month.

 

[maxinger]

Cautious guy here, usually just trading ES, NQ. But something caught my eye on Gold, and I know I can't be analyzing this correctly.

Using IB, I see I can buy the GC futures, Feb 27th expiration, and basically do an options arbitrage with tomorrow's (and I assume other days') expiring options.

For example, go long GC, sell the ATM 1DTE calls for like 27 and buy the 1DTE ATM puts at 6. There has to be a catch here, no? I mean what happened to put call parity? It's never out of whack this much, or is it?

IB is giving me warnings about being in the delivery window, too. But I have 27 days, right?

So, what don't I know?

Very very few traders trade the GC G contract. It is expiring soon.

The most active contract is now GC J contract.


Don't just check how many days to expire.
Instead, check which is the most active contract.