Trade of the Day: FOMC position - Bought Gold Oct 2012 at 1825
Ahead of the Federal Open Market Committee meeting Saxo Bank's Trading Strategy Team took a Call option on Gold. This was based on the view that the FOMC will be forced to do more, rather than wait. See this morning's report: FOMC will do more, not less.
A look at the weekly gold chart indicates 1800 is a likely target for this move. The loss in this position is limited to the actual amout paid for the option: i.e 460 USD per contract.