Does futures on option have strike prices?

[sopodo]

What I like about single stock futures and emini futures is that there is no strike price. I know standard options has strike prices, but what about futures on options?

I couldn't find information on this from a google search, I was probably searching for the wrong term.

Any help much appreciated

Many thanks in advance

 

[Martinghoul]

All options have strikes... A vanilla option can't exist without a strike, regardless of what the underlying is.

 

[arabianights]

A future on an option is an option...

 

[scose-no-doubt]

Does he mean options on futures?

 

[sopodo]

Many thanks for your replies

Does he mean options on futures?

Yes I mean options on futures, is that the same thing as futures on options?

 

[MrGecko]

No.

Option on Future = an option where the underlying is a futures contract
Future on Option = a future where the underlying is an option

 

[scose-no-doubt]

No.

Option on Future = an option where the underlying is a futures contract
Future on Option = a future where the underlying is an option

Jesus christ I didn't know they even existed. Never seen them anywhere. Is there any concept anywhere that cant be sold lol.

 

[MrGecko]

Jesus christ I didn't know they even existed. Never seen them anywhere. Is there any concept anywhere that cant be sold lol.

I don't think they do exist, at least I've never seen 'em. Might be something similar in the OTC markets but I would guess that you could replicate a future(forward) on an option with a bit of engineering from what there already is.

 

[scose-no-doubt]

Oh I mis-read your post. I see now.

 

[sopodo]

A future on an option is an option...

I am completely lost with this thread. My original question was do futures on options have strike prices.

My understanding is that options have been around for a long time and they are used on single stocks. They use leverage. They have strike prices and time decay.

Then there is another kind of option for the futures market and these options are known as futures on options or options on futures. Do these have strike prices and time decay as well. Do you have to meet the strike price or can you day trade them without reaching the strike price?

I would really like to clear this up as I am totally confused

Much appreciated

 

[arabianights]

Is English your first langauge mate? I think this may be a bit of a misunderstanding.

 

[sopodo]

Is English your first langauge mate? I think this may be a bit of a misunderstanding.

Yes English is my first language. As I have clearly misunderstood this, could you please kindly in the easiest manner explain to me how this exactly works?

Many thanks

 

[Martinghoul]

Yes English is my first language. As I have clearly misunderstood this, could you please kindly in the easiest manner explain to me how this exactly works?

Many thanks

Right... I think I see what's going on. Firstly, we're talking about options on futures. There's really no such thing in practice as "futures on options", since such a contract would be redundant.

Do you understand what an option contract is? It really doesn't matter what the underlying asset might be.

 

[MrGecko]

An option on a stock has a strike price and an underlying stock.
An option on a future has a trike price and an underlying future's contract.

Forget about futures on options.