John and Wade,

If I want to purchase options on futures what exchanges do I go though? I would like to check out the options on crude "CL." I know of the $OIX.X and the $OVX.X but not sure about an option on the actual crude.

Johnzo

the NYMEX trades those. www.NYMEX.com

However, it doesn't really matter. What you need is a broker to give you access to those products and then they take care of the routing.

However, however, you will probably get a much better deal in spread and commission costs by trading an Oil ETF like USO. That will give you all the benefits you are probably looking for but with smaller chunks and less cost.

However, however, however, if you really want to "get jiggy" with it then may I suggest DIG, which is a leverage oil ETF with options. Think about that - Leveraging options on a leveraged ETF... how cool is that. Once again you will probably save in costs and be able to control your position size more effectively than options on CL.

Just food for thought

John,

Oh yeah, DIG and DUG are the shit, for lack of a better word. I thought that the crude options could be expensive. I have been thinking about gettin into options to take advantage of some longer term moves while day trade the futures. Maybe for now trading the futures contracts is still my way to go.

You trade the $SPX.X right? Are the equity index options expensive? I was looking at SPX and DJX?

Johnzo

yeah SPX is pretty pricey but CBOE offers a mini 1/10 version of it called XSP. so that is a decent alternative if you want cheaper options.