Oil Options generic question

[trendie]

I have done some of my own research, but need clarification:

What are the various and most popular traded oil options? (WTI? Light Crude?)
Are the same "id"s, eg, WTI used across all exchanges?
What are the best exchanges to trade them from? (CME?)
Where can I get a good options pricing ladder from?

What does one oil contract represent? (1,000 barrels?)
What is a good commission price per contract?

thanks
Hope you all had a great Easter, and had loads of chocolate.

 

[N Rothschild]

I have done some of my own research, but need clarification:

What are the various and most popular traded oil options? (WTI? Light Crude?)
Are the same "id"s, eg, WTI used across all exchanges?
What are the best exchanges to trade them from? (CME?)
Where can I get a good options pricing ladder from?

What does one oil contract represent? (1,000 barrels?)
What is a good commission price per contract?

thanks
Hope you all had a great Easter, and had loads of chocolate.

wouldn't bother with oil options mate, they are extremely expensive and not easy to make money from a long option strategy

http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude_contractSpecs_options.html

 

[Martinghoul]

As far as I know:

- WTI options are the most liquid and popular ones
- Not sure what you mean about the id all exchanges
- They are traded on NYMEX (which is CME now, I guess)
- You can see some info on the CME site here, although I am sure there are other ones:
http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude_quotes_settlements_options.html
- You can see the contract specs here:
http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude_contract_specifications.html
- I am not sure about the commissions.

 

[gooseman]

comms are expensive.

Rothschild-have you ever traded an oil option?

 

[N Rothschild]

yes why?

 

[gooseman]

look how cheap vol is....gamma cheap. i'd rather trade long than short here.

 

[N Rothschild]

i use alot of synthetic calls/puts in my trading, so i trade alot of options but not as an outright position

 

[gooseman]

"and not easy to make money from a long option strategy "

just disagree with that staement that's all.

not sure i'd be using oil options to form synthetic underlyings personally.

 

[N Rothschild]

no worries, well im no options expert i let my broker deal with all my options, she is very good. the statement on oil is more her viewpoint really

 

[main]

"not easy to make money from a...option strategy"


Well of course not. its not easy shorting options either. especially in crude. How about when you short 10 OTM calls and price goes up $6 in a week which happens pretty often. doing some covered call spreads and not just hoping your number gets hit in options is the way to go not by playing them like the lottery