Managing Editor

Using Futures to Buy Metals Wholesale

Rumpole -

Option on gold futures are just that: options on FUTURES, not physical metal. The exercise of these options results in the "delivery" of futures into the holder's account (long futures if a call is exercised, short futures if a put is exercised).

Upon exercise of a call, you'd then have to await receipt of a delivery notice to acquire actual metal as outlined in the article.