Many people believe that the futures prices of crude oil and unleaded gas futures are too cheap at current levels for several reasons, but do not know how to invest in energy futures and options is not.
What is a crude-oil futures option? Crude oil futures option is the right but not the obligation, to buy (call) or sell (put) 1000 barrels of crude oil at a specified price (strike price) for a period of time (long term). The option buyer pays a premium for this right. Ahypothetical example might be the acquisition June 1 $ 65 crude oil futures call option for a prize of $ 1000 Remember that the extra costs there are no connection charges and surcharges are not included. The premium paid and the fees and expenses is the maximum risk of capital loss that an option buyer can bear. The person who speculate on this particular crude oil futures call option hopes the price in June crude oil futures to increase enough for them to sell (offset option A)Useful at any time before the expiration of the option.
There are a number of futures contracts that are closely associated with crude oil futures because of their crude oil is made, such as heating oil futures futures and unleaded gas. Unleaded gas futures option allows the buyer the right but not the obligation, to buy (call) or sell (put) 42,000 gallons of unleaded gasoline at a specified price (the strike) for a specified period (term) . A hypothetical example might be to buy from July 1 $ 1.80Unleaded gas futures call option for $ 900. Again, no additional costs of fees and charges not included. The premium paid and the fees and expenses is the maximum risk of capital loss that an option buyer can bear. The option speculator hopes for the futures price of unleaded gas in July to raise enough for them to sell (offset their opportunity for profit) at any time prior to the expiration of the option.
Crude oil futures and options, unleaded gas futures options investingis very risky and not suitable for all investors. Purchasing options may result in loss of total investment.
Because the futures contract in barrels of crude oil prices and heating oil futures and unleaded gas futures were quoted in a liter? One tonne of crude oil to 42 liters, for which the contracts actually spend the same amount of petroleum products. E 'less confusing in another contract prices for crude oil and distillates materialsoil itself.