Chapter-8-How-to-Trade-the-Futures-Options-國(guó)際期貨市場(chǎng)運(yùn)作(英文-教學(xué)課件)

1、Chapter 8 How to Trade the Futures OptionsChapter 8 How to Trade the FFUTURES OPTIONS TRADING A futures option gives the buyer of the option the right to buy or sell the underlying futures contract at a given price at some time in the future, regardless of what the actual price may be at that time.F

2、UTURES OPTIONS TRADING A fuFUTURES OPTIONS TRADINGA put option conveys the right to sell the underlying option.call option conveys the right to buy the underlying option.FUTURES OPTIONS TRADINGA put oChapter-8-How-to-Trade-the-Futures-Options-國(guó)際期貨市場(chǎng)運(yùn)作(英文-教學(xué)課件)Chapter-8-How-to-Trade-the-Futures-Optio

3、ns-國(guó)際期貨市場(chǎng)運(yùn)作(英文-教學(xué)課件) An out-of-the-money option has no intrinsic value. A second factor that adds value to an option is time. A third factor contributing to the value of an option is the volatility of the market.FUTURES OPTIONS TRADING An out-of-the-money option ha For an option buyer, there is no m

4、argin cost per se; there is only the cost of the premium plus commission costs. Margin in Options Trading For an option buyer, there i The option seller, or writer, has no discretionary choices available once the option is sold and the premium has been received. All of the decision-making power lies

5、 with the buyer, who has three choices. Exit Alternatives The option seller, or wri The most popular and popularized advantage is that an option has limited and known risk. A second advantage of options trading offers is leverage. A third advantage of options trading is staying power. Advantages of

6、Options Trading The most popular and popul Although the loss exposure is limited and known, a loss is still a loss, and several limited losses in a row add up to a large loss. Disadvantages of Options Trading Although the loss exposure iNUTS AND BOLTS The option you bought on the house in the preced

7、ing example is referred to as a call. A call confers the right to buy an asset within a certain period of time at an agreed price. NUTS AND BOLTS The option yoDecember T-Bond 90 CallFutures contractStriking priceKind of optionNUTS AND BOLTS December T-Bond 90 CallFuturesA newspaper price table for a

8、 days trading in futures options A newspaper price table for a MORE NUTS AND BOLTSPremiumExpiration dateExercise (striking) price.MORE NUTS AND BOLTSPremiumOption Value An option has no practical value. You cant live in it or wear it to stay warm on a cold day. An option is worth what someone else w

9、ill give you for it. Option Value An option has nOption ValueOption ValueOption ValueOption ValueBuying Calls Why would a speculator choose an option over an outright long futures position in this situation? The most important reason is limited risk.Buying Calls Why would a spe Gold futures advance

10、to 404.00Gold FuturesBuy at 380.00Sell at 404.00 +24.00Gold 380 Call OptionBuy at 9.00Sell at 31.00 +22.00Buying Calls Gold futures advance to 404.02. Gold futures decline to 348.00Gold FuturesBuy at 380.00Sell at 348.00 -32.00Gold 380 Call OptionBuy at 9.00Expires worthless -9.00Buying Calls2. Gold

11、 futures decline to 348Gold futures stay to 380.00Gold FuturesBuy at 380.00Sell at 380.00 0.00Gold 380 Call OptionBuy at 9.00Expires worthless -9.00Buying CallsGold futuresGold FuturesGold 3ExampleThe question now is, which call option do you buy? ExampleThe question now is, whExampleExampleExampleE

12、xampleSelling Options Selling options short is an entirely different matter from buying them. If you sell an option short and do not own the underlying futures position, the sale is considered to be “uncovered.”Selling Options Selling optiCovered Sale If you own the underlying futures positionfor ex

13、ample, if you sell a silver call short and have a long position in silver futuresthe sale is considered to be “covered.”Covered Sale If you own the Available silver options and their premiums are:Available silver options and tSingle Strategy The goal is to earn most or all of the option premium. The

14、 futures position is taken to preclude the risk of being short an uncovered option. Single Strategy The goal is Long Silver Futures/Short Silver Call Futures Option Buy September silver at $4.45 July 2 Sell September silver 450 call for 29.0 centsSell September silver at $4.45 August 3 Buy September

15、 silver 450 call for 4.5 $ 0 +24.5 centsExample Long Silver Futures/Short Silver Call Futures Option Buy September silver at $4.45 July 2 Sell September silver 450 call for 29.0 centsSell September silver at $4.90 July 21 Buy September silver 450 call at 44.0 +$ .45 -15.0 centsLong Silver Futures/Short SilvLon