I am familiar with stock option (puts and call?s) is there a similar
financial product for gold?

Hi! Thanks for the question.

Please take note of the disclaimer below that the information provided
here is for general information only. It is not meant to replace
informed professional financial investment advice.


Yes there are indeed gold options (calla and put) trading. In the US
it is usually traded on the New York Mercantile Exchange (NYMEX)
through the COMEX Division gold futures and options.

NYMEX: COMEX Gold
http://www.nymex.com/jsp/markets/gol_pre_agree.jsp


If you want to see the ?call and put? prices for previous sessions in
the COMEX, this NYMEX page has some data on them.

COMEX GOLD CALL (Previous Sessions)
http://www.nymex.com/jsp/markets/gol_opt_pscall.jsp?month1=12&year1=2004 


Here are some basic calculations for Gold put and call options.

?1. Gold put options can be used as insurance to establish a floor on
the fiat currency value of gold. This floor price is approximately?

?Floor price = Exercise price of put - Put premium.? 

?2. Gold call options can be used as insurance to establish a ceiling
on the fiat currency cost of gold. This ceiling price is
approximately?

?Ceiling price = Exercise price of call + Call premium.?

?The Gold Market?
http://www.aci.net/kalliste/gold6.htm 
 

Our next article shows how one can buy Gold options.

?All the bullion banks trade in gold options. However, this route
would require you to have an account as a private banking client.
Opening up a private bank account requires the bank to fulfill a
thorough due diligence process that may take some time. A list of
bullion banks is available from the London Bullion Market Association
(LBMA).
A second way of trading options is through the COMEX Division of the
New York Mercantile Exchange but non-US residents should check with
their financial advisors and the local regulatory body regarding the
position with respect to trading by way of a foreign exchange.?

?The third route that you could explore would be to contact a futures
broker and ask what is available. Certain spread-betting companies
trade gold options, for example.?

?Please note that this information is provided for your convenience
only and should not be regarded as investment advice or a
recommendation to buy or sell gold options or futures. You should seek
advice from a qualified financial advisor who should take your
personal financial situation into account.?

World Gold Council: FAQ
http://www.gold.org/value/stats/faqs/#7


Here is the list of members of the LONDON BULLION MARKET ASSOCIATION
and their contact information.

LONDON BULLION MARKET ASSOCIATION: Members
http://www.lbma.org.uk/members_list.html 
   

Search terms used:
gold options put call prices

I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
                 
Thanks for visiting us.                
                 
Regards,                 
Easterangel-ga                 
Google Answers Researcher

Thank you easterangel, your answer is very through. I am going to add
a tip but ask that you add some information on how to set up an
account to do this kind of trading

Hi again! Thanks for the kind words, the 5 stars and for the generous tip!

In my answer above it mentions that bullion banks trade in gold
options but the problem is that you have to open a private account and
it takes a longer time to set it up since the bank has to make a
thorough due diligence process. Another way is that through the COMEX
Division of the New York Mercantile Exchange. According to the NYMEX
website you have to go through the broker to enter the markets.

"The broker will be your point of entry to the markets, so make your
selection with the same care and due diligence as you would any other
financial services professional upon whom you rely."
 
"The broker you choose should serve a clientele geared towards your
level of trading. Some brokers mainly deal with commercial and
institutional customers, some with individuals of high net worth,
while others primarily serve smaller investors."

"How To Get Started"
http://www.nymex.com/jsp/home/how_to_get.jsp 


The website also says that there are three types of brokers: "full
service brokers", "discount brokers" and "introducing brokers".

One such broker is the Smith and Barney Citigroup or what is called a
full service broker. The following page provides instructions on how
to open an account.

Smith Barney Citigroup
http://www.smithbarney.com/myaccess/account_management/forms.html#open

Here are other brokers you can contact since  they have different
policies and methods in opening an account. They will all be happy to
assist you.

Full Service Brokers
http://directory.google.com/Top/Business/Investing/Brokerages/Full_Service/

Discount Brokers
http://directory.google.com/Top/Business/Investing/Brokerages/Discount_Service/

Introducing Brokers
http://www.theniba.com/fcm.html


Before you go on opening an account. the MYMEX website reminds us to
check first if the broker is reputable. You can use the National
Futures Association website to check on them.

National Futures Association 
http://www.nfa.futures.org/basicnet/

Thanks again!

Easterangel-ga

easterangel-thank you again for your outstanding research.