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VolatilityOptions 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.
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).
Prices have fallen.
Below illustrates a starting position for a strangle swap consisting of selling April options and purchasing a straddle in a deferred month. If prices moved lower, the position could be adjusted.
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.
Neutral (range bound) Perspective
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