Futures Question?

Discussion in 'Options' started by optionable, Feb 15, 2010.

  1. optionable

    optionable Guest

    Does anyone sell options to get into a futures position?

    I have met some people who sell stock options to get into a stock, if they get called that is, but have never met anyone who does this on futures.

    If someone does this or knows of this strategy, could you please elaborate on how this is similar/dissimilar to doing this with futures as opposed to stocks?

  2. 1) Speculative users would tend to avoid it because of the leverage with futures compared to that with stocks and a desire to avoid delivery issues with the underlying commodity.
    2) Commercial users would be better qualified to short-sell option premium to reduce their cost basis or generate additional revenue with an underlying commodity that they actually deal with. :cool:
  3. tomk96


    if you did this with index futures, you could only do it in the serial months. the quarterly options expire into futures, which expire into cash.
  5. Or , if i understand your question more correctly....Buy a call and sell a put ....at the same strike price (ie. buy a call / sell a put )equals a Synthetic Long Futures position. hope that helps.
  6. NHS


    How does this work?


    sell 100 call and buy 200 long futures?
  7. FredBloggs

    FredBloggs Guest