Stupid question about CRUDE OIL OPTIONS

J

jordi742

Crude oil is up more than 7% today. I we look at the options chain, it turns out that the 95 CALL it's been up almost $4.5 in just 12 hours. The BID ASK is 6.92 vs 7.07, which means that yesterday was 2.42 vs 2.57

Is is correct to say that if you had bought a 95 call yesterday, you would have doubled your money??? or am I missing something?

thanks !!
 

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I've been at this awhile. I'm in my 26th year. And I asked what I thought was a stupid question a few days ago. I was reminded that there is no such thing. We're here to help each other. There will always be some toxic people on any site, but I've noticed a much more friendly environment on ET over the last few years. It was really bad for a time many years ago. It's why some of my favorite posters left.

Ask away. (BTW, I would have answered your question, but GotherL did it for me).
 
jordi742 said:
Crude oil is up more than 7% today. I we look at the options chain, it turns out that the 95 CALL it's been up almost $4.5 in just 12 hours. The BID ASK is 6.92 vs 7.07, which means that yesterday was 2.42 vs 2.57

Is is correct to say that if you had bought a 95 call yesterday, you would have doubled your money??? or am I missing something?

thanks !!
More...
%%
Assume that data is right, even though option data can be real tricky , including frequent errors, but notice ''the time of the trades'' , all over the map. Must close to right #s/since there is no bid on a put of the same price. At least losses can be limited .
That close to expiry/ it made such a big move\ not very good chances of catching that kind of move much.
Some did, ok, but 100% plus in 12 hours, you think that the sellers are going to lose that consistantly?? I dont.
But @ least with derivatives they are willing to pay out some \not like insurance companies which are known to cancel after big payout.
 
abc1234 said:
Are we talking options on CL or a micro?

Wouldn't he net $4650 in your example that he buys on the bid and sells the offer?
More...

As I said in another thread, please excuse my ignorance, as I am just getting back into options.

So options on micros are $1000.00 per $1 quoted. As opposed to stock options where each contract is worth 100 shares.

Man, I need to get some new options books.
 
jnbadger said:
As I said in another thread, please excuse my ignorance, as I am just getting back into options.

So options on micros are $1000.00 per $1 quoted. As opposed to stock options where each contract is worth 100 shares.

Man, I need to get some new options books.
More...

Micro = $100 per $1.
CL = $1000 per $1.
 
jordi742 said:
Crude oil is up more than 7% today. I we look at the options chain, it turns out that the 95 CALL it's been up almost $4.5 in just 12 hours. The BID ASK is 6.92 vs 7.07, which means that yesterday was 2.42 vs 2.57

Is is correct to say that if you had bought a 95 call yesterday, you would have doubled your money??? or am I missing something?

thanks !!
More...
Maybe consider a small trade with small expectations profitwise but good payback info-wise.
Entirely apart from trade price concerns,
Maybe draft an outline of what your research tells you about the mechanics of trade entry and exit for that security.
Get a feel for how it should execute based on how you understand what your research tells you.
Then gird your loins and do a small small trade.
What worked as expected? What didn't. What's next.
 
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