April Gold Option Expiration Day

Tue, Mar 27, 2012 - 10:58am

Just a brief update this morning as I have a very full schedule today. Additionally, The Wicked Witch has a few things that she'd like to share with you and I know she'd like to get that done today, too.

So let's get right to it. Today, of course, is March 27 which is the expiration day for the April12 gold options. This expiration occurs at the Comex close of 1:30 EDT. To understand the significance of this, you must think like The Cartel and the last thing they need right now are inspired longs taking delivery through the Comex. Therefore, The Cartel "checks the books" and determines the price at which the minimum number of option holders will stand "in the money" and, potentially, convert to an April futures contract and take delivery. Sometimes (most of the time), The Cartel is able to manage this effort quite successfully. For this month, I defer to our new friend, "Winston" as he's been right on the money (no pun intended) this past week.

First, price was gunned down last week. Winston told me that the primary reason for this was to squeeze the folks who had sold April puts, a few weeks back, thinking that this was easy money. As price dropped, these option "shorts" were forced to hedge by shorting an actual futures contract. Once these "weak hands" were sucked in and short futures, gold reversed last Thursday and is up nearly $60 since. Mission accomplished for phase #1. Phase #2 is intended to minimize the potential damage described in the paragraph above. In this regard, we also heard last week that The Cartel would attempt to pin gold below $1700 at the close today. So far, mission #2 is looking good, also.

As you can see on the charts below, gold is showing fine strength here and not giving back any of the gains from yesterday. However, you can also see that The Cartel has instituted, at least for today, a hard cap just below $1700. Can this change? Of course it can. There are always headline events that can sway momentum intraday. For now, however, let's just be content today to consolidate yesterday's gains and get ready to fight the remainder of this week. Once gold option expiry is behind us, I expect gold to be cleared to move through $1700 and it will likely drag silver along with it, through $33.

Again, The Wicked Witch has a few things on her mind so please check back later today for a possible visit from The Wicked One and her trusted sidekick, Ruprecht. In the meantime, please click the link below and read the latest missive from Bill Gross. Though I think he's a weasly, little political insider who uses his connections for the profit of his company, this report is helpful simply because he's a weasly, little political insider who uses his connections for the profit of his company. The guy is chairman of the "Good Old Boy Club". If anyone has the ear of The Bernank, it's Billy. Therefore, heed what he says. It cuts through some of the SPIN and the MOPE.


Have a great day! TF

About the Author

turd [at] tfmetalsreport [dot] com ()


silver bullett
Mar 27, 2012 - 11:01am

2 nd


Mar 27, 2012 - 11:03am


It's a shame that options expiration is today. That means we have two traditional beatdown days in a row. Just opportunities to keep stacking!

Mar 27, 2012 - 11:03am



Mar 27, 2012 - 11:04am


I finally got lucky! On the last dip, I bought a batch of Mercury dimes. Last night while going through them with my magnifier (old eyes are hell), a certain dime floated up out of the group! A 1931 D in "good" condition. I suppose I should have it graded.

First time I have ever found a key date just searching through a bunch of random coins. It can still happen! (looks like the one below)

Mar 27, 2012 - 11:07am

Thanks T-Bone

Bitter Money Fights Shaped US History Pt. 1 & Pt. 2

Go here for that story and other news...


Mar 27, 2012 - 11:07am

If you actually READ the

If you actually READ the blog, you would have never been first. Besides, who cares?

Dr G
Mar 27, 2012 - 11:09am

And down we go, into Comex

And down we go, into Comex close, just as anticipated. Never fails. You can set your watch, or remember your wedding anniversary, or numerous other things, by this stuff.

Mar 27, 2012 - 11:13am


I am reposting this...as it is very important you & everyone makes one...& puts it away for a "rainy" day!!!...

You may want to weld one of these together...very soon!...Very inexpensive to make...& may be a life saver!...


Actually...if you would make one for me...I will pay you for doing so!...

All's "weld"...that ends "weld"!!!...

Bag Of Gold

Mar 27, 2012 - 11:13am

Bill IS Gross!

I have a hard time believing much of what this trillion dollar fund manager "shares" with los peones. He was the guy as I recall back in the early days of the Obongo nightmare who was trumpeting the need to create at least a half trillion to a trillion per year in new money. He certainly got what he wanted.

Mar 27, 2012 - 11:17am

M2M party


Also March 31st is quarterly M2market party time at the ECB..... and April 1st was the date everything went to hell in a hand basket for silver and gold longs a year ago.....repeat this year or the polar opposite??!!!!!



P.S Did you not ban the tw*ts from posting 1st, 2nd etc yet??

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