Copper Commodity Option Contract Question.? - copper options
I am new to options on commodities, but are familiar with stock options. I want to buy a put option from the perspective Herehttp: / / data.tradingcharts.com/futures/puts/HGU8_2008-03-05.rp.html copper of 08 September. I suspect the 240, 275, 325 and 340 of 240 above the exercise price of $ 2.40 I want to do is protect myself in case of a head and copper is trading at $ 2.90 or less in September this year. What I can not understand is the assessment of the option agreement on the shares if the opportunities, making money is valued at € 1.00 per $ 1.00 decrease. What should I ask when I buy 08 Septembre 240 and copper contract was trading at $ 2.90 on 08 September, what is the option that deserves, I think it is pointless, "one of the 240 strike price of $ 2.40.
If it is possible for someone to play the best option for long term might recommend for my purchase to protect myself "if" Copper fell below $ 3.00 in September why he ITM and OTM options all options shares?
Wednesday, January 6, 2010
Copper Options Copper Commodity Option Contract Question.?
1 comment:
I have never used options on futures, so I just say what I found on the web.
First, is the basis for the future of 25,000 pounds, 100 pounds, and the option underlying is a futures contract. Therefore, for deep in the money option one cent per pound change in copper prices, option costs $ 250.
http://www.oxfordfutures.com/specs/coppe ...
This probably explains why you are having difficulty in determining the valuation of warrant had contracts.
I'm sure that was the reason that OTM options, the source you have selected for appointment will be shown that the forward contracts in progress. In another source I find exercise prices between 195 to 800
http://sites3.barchart.com/pl/vsn/optqte ...
Do not think that someone is the best long-term "may recommend to play for you, because what is the best game for one person may not be the best game for any other person who would do the same. It's like saying what is auntomobile buy the best insurance. For a person of myGht a deductible of $ 250, on the other side is a deductible of $ 1000, and the third best option is no collision insurance at all.
Hope this helps.
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