Launch of Options in Crude oil : SEBI the Finance capital and the MCX Commodity Market regulator has granted the permission to MCX for launching options trading in MCX Crude Oil (100 Barrels).
Trading Time : Mondays TO Friday
Trading Time Duration : Monday to Friday – 10.00 a.m. to 11.30 / 11.55 p.m
Descriptions: Options Call / Put on Crude Oil Futures
Trading Unit: One MCX Commodity Crude Oil futures contract
Option Type – Call and Put Options
Lot size – 100 barrels
Underlying Quotation/ Base Value: Rs. Per Barrel
MCX Crude Oil Call and Put Options
Best Crude Oil Options are divided into two part- calls and puts. Trader purchased crude oil call options who are up trend about crude oil prices. Traders believe that oil costs can fall will buy MCX Crude Oil place options instead.
Its not easy to Buying Calls and Puts only way to trade options. Very popular strategy is option selling used many professional option trader in Crude Oil.
As per Market compared to position on the underlying MCX Crude Oil Future outright, the MCX Crude oil Buyer option gains additional leverage from the premium payable is typically lower then the margin needs to open a hold position in the underlying in crude oil future.
Limit Potential Losses
As crude oil options only grant the right but not the obligation to assume the underlying crude oil futures position, potential losses are limited to only the premium paid to purchase the option.
MCX trader get big range of trading strategies and trader cater to limited risk profile. Low Investment trading Profile.