ACE Crude Oil - January 13, 2020

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

Get your copy of Paul Forchione's book, "Trading Calendar Spreads".  Learn techniques from a professional options trader to manage risk while speculating on futures markets.



Click here to view Paul's eBook

By using our website, you agree to accept our terms of use (click to read)

Term Structure

CL term


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.



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


Prices have fallen sharply since the earlier news of escalations between the U.S. and Iran near the Fibonacci 61.8% retracement level. Volatility has tapered slightly below recent historic levels.

CL Daily

* Tip: Click here on enlarging images


Below illustrates a starting position for a strangle swap consisting of selling March month options and purchasing a straddle in a deferred month (April). If prices move too high, the position could be adjusted if prices move to extremes near sold options.  

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.

CL survey

CL SSwap

Join our Free Webcast each month and learn how these strategies can benefit your trading.

Sign Up Now

Learn More

We look forward to answering your questions and helping you get started