Long-term American Options in Crude Oil

Discussion in 'Commodity Futures' started by Daal, Nov 13, 2008.

  1. Daal


    does anyone know which exchange offers this?I believe CL options are european
  2. nymex does
  3. Daal


    on the CL contract?as I said I'm looking for american style options(exercise at any time)
  4. You WANT to be able to exercise?
  5. CL options traded in the pit and on Globex are American style. The Asian and European styles can be done on Clearport.
  6. Daal


  7. HLB


    Is CL NYMEX options cash-settled upon exercise?

    I thinking about buying some RB JAN calls, if gasoline will touch $1.000

    What's the relationship between UGA ETF and RB ? I think UGA invests in RB futures contracts, but with management fees, same as USO invests in CL futures.
    I think they constantly losing money when futures in contango.
    Also ETFs have credit risk.

    Maybe going long futures and shorting equivalent amount of ETFs in the long run will make money?

  8. Daal


    I'm not a futures expert so take my comments with a grain of salt. I dont think thats right at all, otherwise there is a risk premium to just go long anything in backwardation. the studies ive seen show that is true for SOME commodities, but then either the contango or the backwardation had to profitable in these kinds of studies, its turns out that it was backw.

    any kind of risk premium(free money) people think exists could easly be just temporary thing that dissapears till another study comes out saying 'contango will make you money like it did in the last 5 years in agriculture comm'. you get my point
  9. HLB


    just went long 1 QM @ 48.725

    somebody offering CL JAN 50 puts @ 5 - is it a good price?
    intrisinc price is ~ 1.3, so if I'll by 1 CL 50 put, I'll convert position to synthetic straddle and then may adjust with USO for 0 delta.

    What do you guys think?

  10. HLB


    out @ 50.225
    can't hedge the long and no stomach to hold over weekend
    #10     Nov 21, 2008