Tell me if I am wrong but when you buy an option, your risk is defined. If your punt is wrong on a call and gold say drops 100 bucks you just lose the cost of that option regardless.
If I am not mistaken the cost of call gold options should now be much cheaper because gold is dropping or is it weighted to volatility in general. Since buying a falling gold price is contrarian and I expect a call option should be a lot cheaper than say post NFP. Is this correct?
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Tell me if I am wrong but when you buy an option, your risk is...
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