GLD implied volatility
- Thread starter JohnDorian
- Start date
Robert Morse
Sponsor
Gold IVOL tend to go up when the cost of gold moves higher and is in an uptrend.
Hi, where did you get that chart? Tks
GLD has been in a range of $110-$130 the past 5 years. What caused the IVOL to shrink 2 years ago?
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I made the chart. The data comes from the cboe website.
Robert Morse
Sponsor
You just answered your own questions. Each political shock and fear that in the past forced investors to run to gold, no longer does that. I trade GLD options as a Market Maker on the AMEX pre-2010. Back when Gold was moving up daily, all the call volume was buying OTM calls. When I say all, I mean all. There were no put buyers or GLD calls sellers. Every $1.00 option was being bought in every month every day. There is just no fear of missing out on a gold rush today. Of course that can change.
Interesting insight. Thank you.
I had friends selling their rental houses and buying gold in early August 2011. They were close to the top in gold and the bottom in the housing market. GLD implied volatility back then was about three times what it is today.
Now I've seeing people who have no money and even high school students buy crypto, biotech, and cannabis stocks. They're looking for maximum exposure in the form of individual stocks and leveraged ETFs. They would buy options if they knew how.
The closest thing I have to an explanation is that people prefer easy answers to nuance. If ETFs are good, stocks must be better. If stocks are good, options must be better.
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