ACE Crude Oil - September 23, 2019

Below is an illustration trading futures options on Crude Oil.  Our post shows bullish and bearish positions using a combination of call and put options.


Trade Options on Futures

Crude Oil * Directional & Neutral Positions

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Term Structure

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Volatility

Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report. Ask about the Weekly Option's Report for more information or watch our video.

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Notes:

Contract Size - 1,000 barrels.

Tick Size:  Outright: dollars and cents with 0.01 points=$10

Trading Hours: CME Globex: Sunday - Friday 6:00 p.m. - 5:00 p.m. Eastern Time (CST).

* Tip: Click here to read a helpful tip about Crude Oil futures and options


Charts

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* Tip: Click here on enlarging images


Strategies

Below is the starting position for a calendarized broken wing iron condor. If prices move too high, the position could be adjusted by purchasing a call spread to lessen delta.

The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.

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Alternatively, below is a standard broken wing iron condor. Same applies as above where the position would need to be adjusted if prices moved too high.

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