Chapter 8 How to Trade the Futures Options
Chapter 8 How to Trade the Futures Options
FUTURES OPTIONS TRADING A futures option gives the buyer of the option the right to buy or sell the underlying futures contract at a given price at some time in the future, regardless of what the actual price may be at that time
FUTURES OPTIONS TRADING A futures option gives the buyer of the option the right to buy or sell the underlying futures contract at a given price at some time in the future, regardless of what the actual price may be at that time
FUTURES OPTIONS TRADING a put option conveys the right to sell the underlying option. call option conveys the right to buy the underlying option
FUTURES OPTIONS TRADING ◼ A put option conveys the right to sell the underlying option. ◼ call option conveys the right to buy the underlying option
LME铜期权行情 月份敲定价 波动率 看涨期权 看跌期权 9 1475 18.65 5.02 6.52 10 1475 18.32 6.52 28.18 111475 18.20 32.67 39.57
月份 敲定价 波动率 看涨期权 看跌期权 9 1475 18.65 5.02 6.52 10 1475 18.32 6.52 28.18 11 1475 18.20 32.67 39.57 LME铜期权行情
FUTURES OPTIONS TRADING The seller of the option (also known as the option writer期权签发者)sells the option to the buyer
The seller of the option (also known as the option writer期权签发者) sells the option to the buyer. FUTURES OPTIONS TRADING
FUTURES OPTIONS TRADING An out-of-the-money option has no intrinsic value. A second factor that adds value to an option is time. A third factor contributing to the value of an option is the volatility of the market
An out-of-the-money option has no intrinsic value. A second factor that adds value to an option is time. A third factor contributing to the value of an option is the volatility of the market. FUTURES OPTIONS TRADING
Margin in Options Trading For an option buyer,there is no margin cost per se;there is only the cost of the premium plus commission costs
For an option buyer, there is no margin cost per se; there is only the cost of the premium plus commission costs. Margin in Options Trading
Exit Alternatives The option seller,or writer,has no discretionary choices available once the option is sold and the premium has been received. All of the decision-making power lies with the buyer,who has three choices
The option seller, or writer, has no discretionary choices available once the option is sold and the premium has been received. All of the decision-making power lies with the buyer, who has three choices. Exit Alternatives
Advantages of Options Trading The most popular and popularized advantage is that an option has limited and known risk. A second advantage of options trading offers is leverage. A third advantage of options trading is staying power
The most popular and popularized advantage is that an option has limited and known risk. A second advantage of options trading offers is leverage. A third advantage of options trading is staying power. Advantages of Options Trading
Disadvantages of Options Trading Although the loss exposure is limited and known,a loss is still a loss,and several limited losses in a row add up to a large loss
Although the loss exposure is limited and known, a loss is still a loss, and several limited losses in a row add up to a large loss. Disadvantages of Options Trading