Options expiry dates?

[LiL_JaSoN]

Maybe someone can help me,

Whats the difference between trading an option that expires in Sept opposed to Oct?
The only difference is the oct is price is a little higher, but the move the same direction? For eg:
crude oil (sept) - 9674,
crude oil (oct) - 9717

But if it goes up, they both go up the same value, or down vice versa? It doesn't make a difference? The gains and losses will be the same when trading CFD for both..

 

[wayneL]

Options are non-linear.

Hint: Learn Greek

 

[ROE]

Maybe someone can help me,

Whats the difference between trading an option that expires in Sept opposed to Oct?
The only difference is the oct is price is a little higher, but the move the same direction? For eg:
crude oil (sept) - 9674,
crude oil (oct) - 9717

But if it goes up, they both go up the same value, or down vice versa? It doesn't make a difference? The gains and losses will be the same when trading CFD for both..

options value is calculate based on various factors, one of them is time

in options world time is a premium....

something expire next month has less value than the one expire the month after

 

[LiL_JaSoN]

options value is calculate based on various factors, one of them is time

in options world time is a premium....

something expire next month has less value than the one expire the month after

Thanks,

Understood.

I guess it doesn't make a difference when your short term trading. Might as well go for the longer one, as 1 pip will be the same in either option. The difference in % will be hardly noticeable.

 

[cutz]

Many factors at play,

A deep in the money front month may be worth more than a back month at the same strike.

If you are after limited risk directional, a back month has less negative theta if trading at the money.

 

[village idiot]

Whats the difference between trading an option that expires in Sept opposed to Oct?
The only difference is the oct is price is a little higher, but the move the same direction? For eg:
crude oil (sept) - 9674,
crude oil (oct) - 9717

arent they just futures prices, not options?

 

[cutz]

arent they just futures prices, not options?

Nice pick up VI.

 

[LiL_JaSoN]

Sorry. Future prices, but also see the same thing happening in options.

Talking about futures, DJIA is currently down -120.00. What a night it is going to be.

 

[mazzatelli]

Sorry. Future prices, but also see the same thing happening in options.

Talking about futures, DJIA is currently down -120.00. What a night it is going to be.

If its futures, the price discrepancies are due to backwardation concepts - nothing to do with theta