Comex Gold Options Sweet Spot

April 19, 2023

by Craig Hemke Sprott Money

We write and post these articles every Tuesday, and next Tuesday, April 25, brings the monthly COMEX option expirations. For fun, let’s do something different this week and see if we can accurately predict/guess where prices will be by this time next week.

Price manipulation around COMEX option expiration is something we’ve been following at TF Metals Report for over a decade. If you like to track the gold price and are unaware of this phenomenon, maybe this post will alert you to follow the monthly shenanigans going forward.

In short, the prices of COMEX gold and silver are often “managed” into a spot where the option-writing Banks will feel the least possible financial pain at expiration. To find that “sweet spot”, we can consult the option interest figures and then review them for disparities at different strike prices.