Tag Archives: futures options
What are commodity options?
Posted on 17. Mar, 2010 by Global.
Commodity options offer the option holders the right to buy and sell commodities at the specified rates within a specific time. The commodity options are offered in several over-the-counter markets and exchanges. Helping people to ensure against the price volatility is the main function of the options. There are two main varieties of commodity options. [...]
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Pricing Futures Options
Posted on 03. Mar, 2010 by Global.
Many traders who understand futures trading have a hard time understanding futures options. This is because the pricing of the options is sometimes different for the futures option contracts compared to the futures contracts. For example, the 30 year t-bond futures contract has 32 ticks for each point in t-bonds. Each tick is worth $31.25. [...]
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Futures Options Contracts
Posted on 28. Feb, 2010 by Global.
I want to go over a common concern with futures options trading. I only recommend and teach selling options if you are covering them by buying options. Sold options that are not covered are called “naked options”. That means that if there is a move against you, and you did not also buy options, there [...]
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