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Trading options on oil futures

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trading options on oil futures

Crude oil is the world's most actively traded commodity. Light, sweet crudes are preferred by refiners because of their low sulfur content and relatively high yields of high-value products such as gasoline, diesel fuel, heating oil, and jet fuel. NYMEX, trading member exchange of CME Group, also lists for trading electronically a financially settled futures contract for Dubai crude oil; a futures contract on the differential between the light, sweet crude oil futures contract and Canadian Bow River crude at Hardisty, Alberta; and futures contracts on the differentials futures the light, sweet crude oil futures contract and four domestic grades of crude oil: Light Louisiana Sweet, West Texas Intermediate-Midland, West Texas Sour, and Mars Blend. There is a substantial risk of loss in trading commodity futures and options. Past performance is not indicative of future results. A movement in the cash market would not necessarily move in tandem with the related futures futures options contract being offered. Commodity Brokerage Specializing in Online Futures and Options Trading. Call to begin trading today - International Investors call Currencies Futures Energy Futures Financial Futures Grain Futures Indice Futures Meat Futures Metal Futures Soft Futures. Crude Oil Light Sweet Physical futures are an outright crude oil contract between a buyer and seller. The contracts also serve as a key international pricing benchmark, and: All Rights Reserved Programming by Steelesoft Consulting. American style, options spread, crack spreads, average price, European style and daily Crude Oil Futures Crude oil is the world's most actively traded commodity. NYMEX Crude Oil Futures Contract Specifications Crude Oil Futures Product Symbol. Sunday - Friday 6: Sunday — Friday 6: Trading in the current delivery month shall cease on the third business day prior to the twenty-fifth calendar day of oil month preceding the delivery month. If the twenty-fifth calendar day of the month is a non-business day, trading shall cease on the third business day prior to the last business day preceding options twenty-fifth calendar day. In the event that the official Options holiday schedule changes subsequent to the listing of a Crude Oil futures, the originally listed expiration date shall remain in effect. In the event that the originally listed expiration day is trading a holiday, expiration will move to the business day immediately prior. Crude oil futures are listed nine years forward using the following listing schedule: Additional months will be added on an annual basis after the December contract expires, so that an additional June and December contract would be added nine years forward, and the futures months in the sixth calendar year will be filled in. Additionally, trading can be executed at an average differential to the previous day's settlement prices for periods of two to 30 consecutive oil in a single transaction. These calendar strips are executed trading open outcry trading hours. Trading at settlement is available for spot except on the last trading day2nd, 3rd and 7th months and subject to the existing TAS rules. Trading in all TAS products will cease daily at 2: The TAS products will trade off of oil "Base Price" of 0 to create a differential plus or minus 10 ticks versus settlement in the underlying product on a 1 to 1 basis. A trade done at the Options Price of 0 will correspond to a "traditional" TAS trade which will clear exactly at the final settlement price of futures day. A Delivery shall be made F. Delivery shall be made in accordance with all applicable Federal executive orders and all applicable Federal, State and local laws and regulations. For the purposes of this Rule, the term F. B At buyer's option, such delivery shall be made by any of the following methods: By interfacility transfer "pumpover" into a designated pipeline or storage facility with access to seller's incoming pipeline or storage facility. By in-tank transfer of title to the buyer without physical movement of product; if the facility used by the seller allows such transfer, or by in-line transfer or book-out if the seller agrees to such transfer. C All deliveries made in accordance with these rules shall be final oil there shall be no appeal. C Transfer of title-The seller shall give the buyer pipeline ticket, any other quantitative certificates and all appropriate documents upon receipt of payment. The seller shall provide preliminary confirmation of title transfer at the time of delivery by telex or other appropriate form of documentation. These contracts are listed with, and subject to, the rules and regulations of NYMEX. A Light Sweet Crude Oil Put Call Option traded on the Exchange represents an option to assume a short long position in the underlying Light Sweet Crude Oil Futures traded on the Exchange. Trading ends three business days before the termination of trading in the underlying futures contract. Crude oil options are listed nine years forward using the following listing schedule: The at-the-money strike price is nearest to the previous trading close of the underlying futures contract. Strike price boundaries are adjusted according to the futures price movements. trading options on oil futures

How to Trade Oil Futures Successfully

How to Trade Oil Futures Successfully

5 thoughts on “Trading options on oil futures”

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