point multipliar

Discussion in 'Options' started by WAEL012000, Jul 28, 2007.

  1. Hi guys;

    does anyone know of any calculator out there that could calculate the dollar value of points for options on futures.

    Thanks in advance .
     
  2. MTE

    MTE

    All you need is the contract size.
     
  3. Could you elaborate please.
     
  4. MTE

    MTE

    Well, just look up the contract size for the particular options/futures you are interested in and then you can calculate your point $ value. In most cases, it is already stated in contract specs.
     
  5. MTE...Thank you!
     
  6. The tick value of any contract never changes.

    Each individual tick no matter what the contract is stays the same value. As others mentioned look up the contract specs on the listing exchanges website. What contracts are you looking at?
     
  7. I am still having a hard time with it. For example corn specs is as follows;

    1/4 c/bu = $12.5 So how would I apply that to options? What is each option point worth in relation to the above info.

    The most I am having problems with are soft and agrarians. I know that I am not stupid but I am as dense as a log when it comes to them.

    I need them because I am checking a trading stratagy and I need to know the dollar value for.

    So if I want to sell a dec. 370c, and the last price is showing 107.

    Thanks.
     
  8. dmcw

    dmcw Global Futures

    For the grains, each point equals $50. That Dec Corn 370 Call price of '107' represents 10 7/8. Multiply that by $50 and the premium is $543.75.

    Feel free to call me if you want to discuss your questions. I'll do my best to help you.
     
  9. MTE

    MTE

    Corn futures and options are quoted in cents per bushel. Contract size is 5,000 bushels so 1 cent is worth $50 (0.01*5000).

    The tick size for futures is 1/4 cent per bushel so that's $12.50 per contract.
    The tick size for options is 1/8 cent per bushel so that's $6.50 per contract.

    Also:(from CBOT website):

    Corn, Wheat, Soybeans, Oats
    4 Digit Price Quote
    First 3 digits are cents per bu
    Fourth digit is 1/8 cent/bu
    Tick size is ¼ cent/bu
    7350 = $7.35/bushel
    7352 = $7.35¼
    7354 = $7.35½
    7356 = $7.35¾
    7360 = $7.36
    Soybean Oil = cents per lb.
    2679 = $0.2679/lb
    Soybean Meal = dollars per ton
    2266 = $226.60/ton
    Rice = cents/cwt
    8240 = $8.24/cwt

    So if the Dec 07 370 call is quoted at 10'7 that means 10.875 cents or $543.75 per contract.
     
  10. dmcw

    dmcw Global Futures

    one minor correction to previous: each 1/8 = $6.25
     
    #10     Jul 31, 2007