58 minutes | Aug 26th 2014

Futures Options Roundtable 13: Hot Oil Action

Play
Like
Play Next
Mark Played
Futures Options Roundtable 13: Hot Oil Action The Grand Marketplace: An overview of futures options action. Oil: Crude on a downward trajectory since reaching record highs last month. WTI/Brent spread still remain quite wide. Metals: Gold just barely broke through the $1300/oz price and silver broke through $20/oz. Long positions jumping up a bit, short positions taking it a little on the chin. Ags: Corn taking it on the chin due to wet weather in the Midwest. It’s not a good time to be long. US Agricultural Department projecting 14 billion bushels, a staggering harvest.   The Scrolls: Questions and comments from our listeners Question from Dave - I think Brent may have some legs, perhaps reaching the 110 level by the end of the year. What should I be trading from an options perspective to best express this viewpoint? Question from Savah - Can you explain what an FCM is? And how does that differ from an IB? Or are they the same thing? I am trying to wrap my head around futures, but the alphabet soup does not help. Question from A Mason, Southington CT - Futures are an obligation, while options are a right, but not an obligation. If this is true, why would anybody ever deal with futures? An obligation is always worse than having an option, correct? 
Play
Like
Play Next
Mark Played