Truly irregular trade overnight with volume under 20,000 contracts in an $8 buck trading range supporting a stay away posture from the patchy unrhythmic prices that careen with geriatric fitfulness. Am I perfectly clear? The facts: GSR is unchanged ~47.10. Open interest came in again but at less than 1,000 contracts. RSI remains under 40 remains in a vegetative loofah-like state devoid of expected stimulation. Meanwhile down in the gold pit impoverished locals grasped the past two days at an order (rumored to be from a world-class hedge fund) buying significant lots of DEC 2011 1800 gold calls at 13ish (mid 20s implied vol)...we reckon this Captain of the Universe has plunked down $6.5 million so far on a bet that would return ~$100 million if gold reaches a bimillenial price of ~$2,000 before expiration. Meanwhile I tinker around with mundane April 1400-1450 call spreads at ~$6 and ~16 vol.
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