Option Pros, Please Help

Discussion in 'Options' started by kevinqc, Nov 17, 2007.

  1. kevinqc


    (1) Is buying a Put & going long on a future is same as buying a call ?


    There is a difference ?

    This future & option expires every month. So there is a new series every month.

    Thank You in advance.
  2. HOBO


    With physically delivered futures you should pay attention to contract specifications, when it gets close to the settlement date.
    (Option settlement date is several days prior to respective futures Last trade date).
  3. asap


    that's right. long put + underlying = long call. in general terms, you're better off with the latter, cost wise.
  4. for example, if yo are willing to risk $1000 on your trade, you are better off using the $1000 (exposure) and buy the call....
  5. a call options is equivalent to borrowing money then buying the underlying stock/instrument and buying put options (insurance)...

    This is called the "Put Call Parity" and this is how they create synthetic options etc.

    you might want to read up on some basic stuff before you throw all your money away... i suggest you go do a course.

    <a href="http://yonglonglai.com/shares/" title="yonglonglai.com">very general options site with lots of real life examples</a>
  6. You can also go to 888options.com and get very basic information. I also liked Guy Cohen's book "Options Made Easy." If you REALLY are a beginner, like I was, you are best off using those resources.