Futures Options example. Learn futures options price per day trading.

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Please only use these futures options examples for educational purposes.
Paper trade them.

I created this channel to post quick videos to help explain things better to those on my list and for other who want to learn certain trading strategies. Please forgive the sound of my voice. I had a rough weekend and am tired. If you’re feeling generous : ) , please like the video…

I was doing my search for futures options inconsistencies and
here is what I found.

I am looking at how much an option costs per day compared to an
option from a different month in the same futures market.

I am doing the at the money call options only. I will buy an at the money farther month call and sell the at the money closer month call.

March T-Bond futures contract closed at 148-11
(January options follow the March futures)

Jan. T-Bond options have 7 days left until expiration.
Mar. T-Bond options have 70 days left until expiration.

Jan. T-Bond 148 Call options settled at -49 (49 ticks).
Mar. T-Bond 148 Call options settled at 2-29 (157 ticks).

The Mar. 148 Call is 3.2 times more expensive than
The Jan. 148 Call, but it HAS 10 times more time left.

When putting on any calendar spread, buy the cheaper cost
per day options and sell the more expensive.

Even if you are not putting on a spread, this is a great way to
choose which option to buy or sell.

For more information on these non-directional futures option
techniques, click below: