Heating Oil Options Trading. These options are option contracts in which the underlying asset is a heating oil futures contract. The holder of a heating oil option possesses the right (but not the obligation) to assume a long position (in the case of a call option) or a short position (in the case of a put ...…
Heating Oil Futures Trading. These futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of heating oil (eg. 42000 gallons) at a predetermined price on a future delivery date. NYMEX Heating Oil futures prices are quoted in dollars and cents per gallon and are traded ...…
Crude Oil Options Trading. These option contracts are those in which the underlying asset is a crude oil futures contract. The holder of a crude oil option possesses the right (but not the obligation) to assume a long position (in the case of a call option) or a short position (in the case of a put ...…
Crude oil futures trading. Crude Oil futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of crude oil (eg. 1000 barrels) at a predetermined price on a future delivery date. You can trade Crude Oil futures at New York Mercantile Exchange (NYMEX) and Tokyo Commodity ...…
Futures options usually expire near the end of the month that precedes the delivery month of the underlying futures contract (i.e. March option expires in February) and very often, it is on a Friday.…
A synthetic short futures is an options strategy used to simulate the payoff of a short futures position. It is entered by selling at-the-money call options and buying an equal number of at-the-money put options of the same underlying futures and expiration date.…
A synthetic long futures is an options strategy used to simulate the payoff of a long futures position. It is entered by buying at-the-money call options and selling an equal number of at-the-money put options of the same underlying futures and expiration month.…
Here are some futures options basics – A futures option, or option on futures, is an option contract in which the underlying is a single futures contract. The buyer of a futures option contract has the right (but not the obligation) to assume a particular futures position at a specified price (the strike price) any time ...…
Index options settlement are generally cash-settled options. Therefore, only the representative amount in cash changes hands when cash-settled index options are exercised at expiration. The general rule is as follows: Exercise Settlement Amount = (Difference between Index Value and the Strike Price) x Contract Multiplier…
Index option assignment and exercise are fairly different as compared to equity stock options. Unlike equity options where the underlying stocks have to change hands during settlement, index options are generally cash-settled whereby only cash is required to be transferred to settle the differences.…
Index Options are fairly new to the stock market. As index options are cash-settled options, the holder of an index option does not possess the right to purchase or sell the underlying stocks of the index but rather, he or she is entitled to demand the equivalent cash value from the option writer upon exercising ...…
A Naked Put involves writing a Put option without the reserved cash on hand to purchase the underlying stock. This strategy entails a great deal of risk and relies on a steady or rising stock price. It does best if the option expires worthless. A Put writer who has no desire to own the underlying ...…
OIH ETF Trading Chart and Forecast – OIH showing clear relative weakness to the broad market right now. It broke support of a 5-month uptrend line last week, and its 20-day exponential moving average has crossed below the 50-day moving average. That convergence now acts as resistance just above the high of the past five ...…
AUD Interest rates were raised again this morning by the central bank by a quarter percentage point for an unprecedented third straight month as evidence mounts that the nation’s economy is strengthening. On an intra-day chart you can see in green the reaction to the announcement. Today’s increase is the first time the central bank has ...…
