ACE Crude Oil - Jan 04, 2021

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.


Listen to our Podcast Jan 04, 2021 on the E-Mini S&P

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Trade Options on Futures

Crude Oil * Directional & Neutral Positions

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

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Crude Oil

 

Term Structure

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Volatility

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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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Latest, Biggest, Busiest

Below is a snapshot with what's going on in the world of option spreads.  See where the most actively traded spreads are.

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May 1x2 put spread

From above, there is activity in these spreads.

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* Tip: Click here on enlarging images


Option Strategies

Below is a quick glimpse on particular spreads that stand out in the markets.  You can see this from the number of bid - offer activity and open interest as we explain in our podcast.

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.

Broken Wing Iron Condor

The alternate position illustrated below is within 1 standard deviation earning time decay now with large potential to the downside and higher.  Losses occur if prices fell too far below $40 / barrel with a similar structure to the 1x2 position above.

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Strategy Target Range

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