futures option

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Futures option

Futures Option

A contract giving the holder the right (but not the obligation) to buy (if a call) or sell (if a put) a futures contract. In other words, the underlying asset of a futures option is a futures contract (which itself has a separate underlying asset). A futures option may be useful if it is not readily apparent whether taking a certain futures position would be beneficial to one's investment strategy.

futures option

A put or call option on a futures contract. Because of the price volatility of futures contracts, options on these contracts are high-risk investments. See also Section 1256 contracts.
References in periodicals archive ?
11 December 2013 -- US exchange operator IntercontinentalExchange Group's (NYSE: ICE) London-based ICE Futures Europe subsidiary said it has completed the transition of ICE Brent futures options and related derivatives instruments to a new 'month-ahead' expiry calendar.
Currently futures options are traded on many agricultural, financial, currency and stock index futures.
In this context, securities refers to a wide range of financial instruments, including securities, securities options, money market instruments, futures, and futures options.
Anyone can sign up to try out OptionVue[R] on the BESTDirect platform for futures and futures options trading at no charge," said PFGBEST President and Chief Operating Officer Russ Wasendorf, Jr.
Our goals are to help them be more comfortable with trading futures options and understand the value of options in a trading strategy," said Jeff Lewandowski, director of the PFGBEST Options Division.
Interactive Brokers clients can trade equity, forex, fixed income, energy, metals, and other commodities futures and futures options worldwide from a single account.
PFGBEST has experienced its fastest growth in its history in the past several years largely due to the advancement of foreign investor understanding and need for risk management capabilities through the use of commodity and financial futures, futures options, and foreign exchange," said PFGBEST President and Chief Operating Officer Russell R.
tv, invited veteran equity options trader and OptionsHouse Chief Investment Strategist, Steve Claussen, for a discussion about the CBOE Market Volatility Index (VIX) and S&P 500 futures options volatility.
com, is the only educational website available that allows users to simulate managing a portfolio of stocks, options, bonds, futures, futures options, and mutual funds from 20+ exchanges around the world.
Financial futures, foreign currency futures, commodity futures, and futures options are traded on CME.
Topics for users of PowerSeller will include a review of key features, functionality and routine maintenance to improve performance, evaluating fallout, evaluating rate volatility (rate cones), correlation (betas) and price sensitivity (DPCs), evaluating MBS and futures options, evaluating risk assumptions using reports, previewing PowerSeller 6.
FARR FINANCIAL specializes in the trading of futures and futures options.