Indices DJIA S&P 500 DAX 30 Nasdaq 100 Nasdaq Comp Nikkei 225 FTSE 100 SMI DJ Stoxx 50 CAC 40 Hang Seng Kospi Nyse Comp AMEX   -     -     -     -     -     -     -     -     -     -     -     -     -     -   10911 1137.4 5732.4 2127.7 2438.1 8981.9 5072.1 4984.1 2161.9 5732.4 19614.7 1817.4 7017.6 2174.7 Commodites Light Crude Oil Brent Crude Copper Gold Pallad Platinum Silver Dow Diamonds QQQQ   -     -     -     -     -     -     -     -     -   83.08 106.28 1.17 1758.7 730.5 1782 38.21 109.16 55.42 Last update: 11-08-2011 14:29:00 (GMT - Live)

The option strike price Option, Call Option, Put Option, Option Buyer, Option Seller, Puts and Calls In-the-money, At-the-money, Out-of-the-money Delta The option strike price Time Value Decay Strategy A: Buying calls to take advantage of a rising stock market Strategy B:Buying put options to profit from declining live cattle prices Strategy C: Straddles Using Options on CME E-mini S&P 500 futures Basic Option Strategies: Initiating a Market Position Long Futures (1 Long April Live Cattle Futures) Short Futures (1 Short September Euro FX Futures) Synthetic Long Futures (Split Strike) Long Butterfly Long Straddle Ratio Call Spread Call Ratio Backspread Box or Conversion / Reversal Futures or Options? The relationship between the strike price of an option and the current price of the underlying futures contract is, along with the length of the option, a major factor affecting the option premium. At any given time there may be trading in options with a half dozen or more strike prices—some of them below the current price of the underlying futures contract and some of them above. A call option with a lower strike price will have a higher premium cost than a call option with a higher strike price because the lower strike price will more likely and more quickly strike price become worthwhile to exercise. For example, the right to buy a crude oil futures contract at $61 a barrel is more valuable than the right to buy a crude oil futures contract at $62 a barrel. Conversely, a put option with a higher exercise price will have a higher premium cost than a put option with a lower exercise price. For example, the right to sell a crude oil futures contract at $62 a barrel is more valuable than the right to sell a crude oil futures contract at $61 a barrel. While the choice of a call option or put option will be dictated by your price expectations and your choice of expiration month by when you look for the expected price change to occur, the choice of strike price is somewhat more complex. That`s because the strike price will influence not only the option’s premium cost but also how the value of the option, once purchased, is likely to respond to subsequent changes in the underlying futures contract price. Specifically, options that are out-of-the-money do not normally respond to changes in the underlying futures price the same as options that are at-themoney or in-the-money. Generally speaking,premiums for out-of-the-money options do not reflect, on a dollar for dollar basis, changes in the underlying futures price. The change in option value is usually less. Indeed, a change in the underlying futures price could have little effect, or even no effect at all, on the value of the option. This could be the case if, for instance, the option remains deeply outof- the-money after the price change or if expiration is near. source: National Futures Association