ACE Crude Oil - Jun 09, 2019

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.

Trade Options on Futures

Crude Oil * Directional & Neutral Positions

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Term Structure

cl term


Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report. 
Ask about the Weekly Option's Report for more information or watch our video.

optv cl


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: Understanding what the numbers mean when looking at Live Cattle prices. The quotation you see is U.S. dollars and cents per cwt (hundred weight). Each contract you are buying or selling is 40,000 pounds.  A 1 tick move is $10 USD calculated as $0.00025 x 40,000 lbs.  Think of quotes as dollars per hundred pounds (or cents per pound).

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about Live Cattle futures and options


Below are weekly & daily charts for reference.

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cl daily 1

* Tip: To view a larger chart image, simply right click on the image with your mouse. Next, select view image. Be sure to click the back arrow on your browser to go back to the original page.

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here on enlarging images


Below is the starting position for a strangle swap. It's a variation to a standard iron condor structure which reduces Theta / Vega and flattens the current curve (today) to span a wide range while reducing both Theta / Vega components. It allows for time to adjust the spread structure if necessary as price moves within a reasonable range of daily volatility.

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.

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Below is an illustration of a diagonal butterfly

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