Long-term American Options in Crude Oil
- Thread starter Daal
- Start date
nymex does
You WANT to be able to exercise?
CL options traded in the pit and on Globex are American style. The Asian and European styles can be done on Clearport.
Is CL NYMEX options cash-settled upon exercise?
I thinking about buying some RB JAN calls, if gasoline will touch $1.000
What's the relationship between UGA ETF and RB ? I think UGA invests in RB futures contracts, but with management fees, same as USO invests in CL futures.
I think they constantly losing money when futures in contango.
Also ETFs have credit risk.
Maybe going long futures and shorting equivalent amount of ETFs in the long run will make money?
HLB
I thinking about buying some RB JAN calls, if gasoline will touch $1.000
What's the relationship between UGA ETF and RB ? I think UGA invests in RB futures contracts, but with management fees, same as USO invests in CL futures.
I think they constantly losing money when futures in contango.
Also ETFs have credit risk.
Maybe going long futures and shorting equivalent amount of ETFs in the long run will make money?
HLB
I'm not a futures expert so take my comments with a grain of salt. I dont think thats right at all, otherwise there is a risk premium to just go long anything in backwardation. the studies ive seen show that is true for SOME commodities, but then either the contango or the backwardation had to profitable in these kinds of studies, its turns out that it was backw.
any kind of risk premium(free money) people think exists could easly be just temporary thing that dissapears till another study comes out saying 'contango will make you money like it did in the last 5 years in agriculture comm'. you get my point