The iShares COMEX Gold Trust was down 1.28 yesterday to 13.19.? The IAU is trading at the lows of 2013.
Midday yesterday paper lifted the offer on the ISE for a block of 5,000 IAU Jan 2014 12 calls for 1.75. ?Average volume is 1,911 contracts per day in the name.? Open Interest is 458 contracts in the strike.
The fresh Open Interest suggests a buyer doing a little bottom fishing yesterday paying 21.26% volatility in Jan 2014.? The IV was up 3.4 points in that cycle.? The trade is looking very savvy on the open today.
30-day implied volatility is 34%.? 10-day implied volatility is 50%.? 30-day implied volatility is trading below the 10-day historical volatility.
iShares Gold Trust (the Trust) is to own gold transferred to the Trust in exchange for shares issued by the Trust (Shares). Each Share represents a fractional undivided beneficial interest in the net assets of the Trust.