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2 days ago · Trade NYMEX WTI Crude Oil futures (CL), the world’s most liquid crude oil contract. When traders need the current oil price, they check the WTI Crude Oil price. WTI (West Texas Intermediate, a US light sweet crude oil blend) futures provide direct crude oil exposure and are the most efficient way to trade oil after a sharp rise in US crude ...
- Quotes
Trade NYMEX WTI Crude Oil futures (CL), the world’s most...
- Crude Oil futures and options
Freight Forward Agreements (FFAs) on NYMEX are fundamental...
- Quotes
6 days ago · Access forward-curve liquidity across a broad product slate of crude oil futures and options covering key locations and crude grades. Trade North American crude oil grades as differentials to our benchmark WTI Light Sweet Crude (CL), Brent (BZ), or as outright prices.
Freight Forward Agreements (FFAs) on NYMEX are fundamental to every global trading activity in crude oil, refined products, natural gas liquids as well as liquid natural gas.
3 days ago · CL.1 | A complete Crude Oil WTI (NYM $/bbl) Front Month futures overview by MarketWatch. View the futures and commodity market news, futures pricing and futures trading.
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- 6.67%
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- 0.93%
- What Are Crude Oil Options?
- Call Option Payoffs
- Crude Oil Options vs. Crude Oil Futures
- Examples of Crude Oil Options
- The Bottom Line
An option is a financial contract that is based on the value of an underlying asset. It gives purchasers the right but not the obligation to buy (call option) or sell (put option) the underlying asset at a preset strike price by an expiration date. In most cases, crude oil options do not require physical deliveryat expiration. As such, the most a c...
The table below summarizes the American optionpositions that, once exercised, result in underlying futures positions shown in the second column.
Crude oil options are different than another complex financial instrument: crude oil futures. Futures contracts require more capitalfor a given level of exposure relative to options and do not have options' asymmetric return characteristics. Unlike options, some (but not all) crude oil futures contracts require physical delivery of the underlying a...
American Call Options
Let’s assume that on Sept. 27, 2023, a trader named Helen bought American-style call options on April 2024 crude oil futures. The options strike priceis $90 per barrel. On Nov. 1, 2023, the April 2024 futures price is $96 per barrel. Helen decides that she wants to exercise her call options. By exercising the options, she enters into a long April 2024 futures position at the locked-in price of $90. She may choose to wait until the contract expires and take the delivery of physical crude oil u...
European Call Options
Let's say that on Sept. 27, 2023, Helen buys European-style call options on April 2024 crude oil futures at a strike price of $95 per barrel and that the option costs $3.10 per barrel. On Nov. 1, 2023, the April 2024 crude oil futures price is $100 per barrel. Helen wishes to exercise the options. Once she does this, she receives $5,000 (($100 – $95) x 1000) as a payoff on the option. To calculate the net profit for the position, we need to subtract the cost of options (the option premiumpaid...
Traders who seek to increase leverage or secure an asymmetric return profile may choose to trade crude oil options on the NYMEX or another exchange. In return for a premium paid upfront, oil option holders obtain a non-linear risk/return profile not available in futures contracts. Additionally, long options traders do not face margin calls that mig...
Get the latest Crude Oil (CLX24) real-time quote, historical performance, charts, and other financial information to help you make more informed trading and investment decisions.
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How do American crude oil options work?
2 days ago · Crude Oil WTI (NYM $/bbl) Front Month advanced future charts by MarketWatch. View CL.1 futures and commodity data and compare to other futures, stocks and exchanges.
