Weekly options on WTI crude & Brent crude?

[J-Law]

Does anyone know if there are exchange listed weekly options on the NYMEX Crude & Brent Crude futures?

 

[donnap]

Yeah, they've been out for a while. Here you go.

http://www.cmegroup.com/trading/ene...optionExpiration=6209-Q4#optionProductId=7503

http://www.cmegroup.com/trading/ene...ntractSpecs_options.html#optionProductId=7591

I've looked at them, but haven't traded any. I'm staying with the CL monthlies for now.

 

[J-Law]

Thanks, Donnap

 

[J-Law]

Trying to make heads or tails of them. The look like they price like equity options with not to much premium farther out to sell comfortably. Anyone trading these?

 

[RichardRimes]

I was trading the monthlies...pretty successfully but then vol seemed to drop out and your right....the premium is just not there. Oil doesn't really move then wham...moves big...I don't think you are paid enough for the risk.

 

[Maverick74]

I was trading the monthlies...pretty successfully but then vol seemed to drop out and your right....the premium is just not there. Oil doesn't really move then wham...moves big...I don't think you are paid enough for the risk.

You know, it's not against the law to buy options. LOL.

 

[RichardRimes]

totally Mav and I have bought...believe it or not...however just as risky!!

 

[donnap]

All we need is a lil' ol' hurricane or a small Middle East war and BANG!

 

[effective]

I was doing alright so far on crude options. You have to get creative but it can work. Here is one position just before I closed it

 

[Brighton]

On a related note, here's a long, informative profile of Andrew Hall, crude oil trader extraordinaire.

He's not convinced shale is all it's cracked up to be (haha), so he's buying long-dated contracts.

http://www.bloomberg.com/news/2014-09-03/trader-who-scored-100-million-payday-bets-shale-is-dud.html