Related Topics

  • Unveiling the Mysteriousness of NOB Spreads - A common way to hedge your risk against your fixed income portfolio is to use the Treasury bond over the Treasury note spread. This is commonly known in the futures industry as the NOB spread.
  • Want to really dive into using spread trading? Request your copy of our Introduction to Spread Trading guide.

Trading Options: Bull Call Spread

Watch this RJOF Quick Tips: Trading Options - Bull Call Spread video presented by our Senior Market Strategist, Mike Sabo to learn what this spread entails and how to implement it in your futures trading plan. 

 

 

 

What are Options on Futures?

There are two types of options. Calls give the buyer the right but not the obligation to buy a futures contract at a certain price prior to option expiration. Puts give the buyer the right but not the obligation to sell the underlying futures market at a certain price prior to option expiration.


Long Bull Call Spread

Buy the lower call strike price (pay premium) while selling the higher call strike price (collect premium) in the same contract month in the same ratio.

 

Tips for Trading a Bull Call Spread

  • Calculated risk
  • Calculated profit potential
  • Lower cost of entry
  • Staying power

 

Options Trading Strategy

 

Options Trading Strategies

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This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.