I have a university project where we trade futures and options, so I have a long position in crude oil futures (from 63, going really bad) and want to hedge it using options
If I have 3000 contracts long @63, how many option contracts do I need to buy to hedge it as good as possible?
The December options have a strike price ranging from 58 - 79, in $1 increments, I'm not sure which one I should pick.
My view is that oil will rebound and go up in the near future, unless it goes below 50, I'm not too familiar with options but I guess that would mean I would need to buy puts with a strike price of 50? (not available)
I guess I would have to choose the options that expire on 21 December because 16 November already passed? The project ends in early December
Thanks
Submitted November 19, 2018 at 03:47AM by iloveprettygirlz https://ift.tt/2OQF3os
