I faded oil this morning buying 10 otm USO puts for $2 / contract. Oil dropped @ $5 intraday, puts went to $4, for a $2k profit. What would be the profit trading roughly the same dollar amount shorting oil futures for a $5 move? tia
A crude oil futures contract size is 1,000 barrels. Every dollar that the futures moves is equal to $1,000 of profit or loss ($1 per barrel in other words). July crude oil is down about $2.50 for the day right now.
Timscott: I find ITM options (2 to 3 strikes) to be much lower risk than OTM. YES, they're more expensive but you're getting more "bang for your buck" b
I only had to put up $2k, i was wondering if it even possible to only put up the same $2k in oil futures and making the same profit. Kind of looking for best bang for the buck / lowest risk / highest return....
In most firms you have to cough up the whole margin (as of today almost 12,000 USD), but in a few they have lower intraday margins (as low as 2,000, I hear, although I trade with IB and it is the full margin). There is also a e-mini contract at half the price and size. So in order to make 5,000, 500 or 50 first you're gonna need 12,000. I guess that for smaller amounts you're limited to options. Best trading, Jorge