Trade Options on Futures
Crude Oil * Directional & Neutral Positions
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Options fall into the category of being slightly undervalued in 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).
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.
Below is a bear call spread.
A variation is a vertical swap which is a bit more forgiving to the upside though much less positive theta on time decay. Margin requirement is substantially less than above.
Below is a more aggressive bearish calendar fly with positive vega taking advantage of a theoretical edge if implied volatility were to suddenly spike. It is directionally bearish.
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