Global equity markets and the euro are tackling sell-offs at the beginning of the week after cash-strapped Greece broke off deadlocked talks with creditors over the weekend despite a June 30 due date of a huge repayment to the IMF.Bullion traders said emergence of buying by jewelers and retailers at existing levels amid a positive global trend mainly attributed recovery in gold prices.The precious metal has been tumbling consecutively from last couple of days but it seems like testing support at 1174.58 to bounce back.With the bulls catching optimism, traders in this commodity rushing up to buy at this level so as to catch the best optimal entry price, on a hedging front buying naked calls are also looking attractive as the delta and corresponding option greeks suggest the prices of these options are fairly priced in.Both oscillating indicators began showing strength in spiking up prices. RSI (14) converging the risisng prices at 48.0137, while slow stochastic evidences the %K line crossover exactly at 20.8150. (Currently %K line at 39.0310 & %D line at 21.9125).At-The-Money 0.5 delta calls can be bought at present juncture for near term targets at 1200 levels.Contemplating prevailing Greece debt issues on the radar, we are expecting quite bullish momentum on this commodity.Evaluating the portfolio with adding longs on the underlying FX spot outright the option holder has been able to enhance leverage since the fairly priced calls appreciate in value faster percentagewise for every point rise in the price of the underlying commodity prices. 0.5 delta shows the significance of the current option pricing.
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