A crude oil option chain shows the available options contracts for crude oil, including strike prices and expiration dates.
Call options give the buyer the right, but not the obligation, to buy crude oil at a specific price before the option expires.
Put options give the buyer the right, but not the obligation, to sell crude oil at a specific price before the option expires.
The strike price is the set price at which an option can be bought (call) or sold (put) when it is exercised.
The expiration date is the last day on which the option can be exercised. After this date, the option becomes worthless.
Option chains display essential data like strike prices, premiums, volume, and open interest for both calls and puts.
The premium is the price of the option contract. It depends on factors like the strike price, volatility, and time until expiration.
Volume shows the number of contracts traded, while open interest indicates the total number of open contracts.
Traders use various strategies with crude oil options, like hedging against price movements or speculating on future prices.
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