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