Futures Options Roundtable 13: Hot Oil Action
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?