ACE Crude Oil - Feb 22, 2021

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.


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Trade Options on Futures

Crude Oil * Directional & Neutral Positions

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Crude Oil

 

Term Structure

cl term


Volatility

cl optv

cl vol


Notes:

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: Click here to read a helpful tip about Crude Oil futures and options


Charts

cl weekly

cl daily

cl prices


Latest, Biggest, Busiest

Below is a snapshot with what's going on in the world of options with the most actively traded spreads.

Enlarge by right clicking mouse over each image and select 'open in a new tab'

cl shift

Below is a Dec CL 98/100 Bull Call Spread shown in the middle column above with ~28,000 positions on the spread.  I've listed alternatives below.

cl bull.call

* Tip: Click here on enlarging images


Option Strategies

Below is a quick glimpse on particular spreads that stand out in the markets.  You can see this from the number of bid - offer activity and open interest as we explain in our podcast.

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.

Vertical Swap (Puts)

The alternate position illustrated below is a vertical swap.  Position has positive time decay (Theta) and negligible impact from changes in implied volatility.

cl vswap

Strategy Target Range

cl vswap target


Calendar Put

Below is a variation if the market were to move directionally lower. Position has positive time decay and benefits from an increase in implied volatility.

cl calendar.put

cl calendar.put.target


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