Futures For You by Carley Garner
ARTICLE SYNOPSIS ...Futures For You by Carley Garner
With Treasury futures at or near an all-time high, I would like to begin trading options on bond and note futures but I am having difficulty calculating profit, loss, and risk.
Figuring in Treasury options often causes confusion for two primary reasons. First, both options and futures in Treasuries are traded in fractions. Second, unlike other commodities and financial futures, bond and note options differ in the manner in which they are quoted from their futures contract counterparts. Before you can understand how to calculate Treasury options,...