After three large bullish candles, the price of SC2605P375 rose from a low of 0.85 to 2.8. (The increase mainly comes from a surge in IV)
With 42 days to expiration, the previous low price of crude oil was 418.4, meaning that a 10% drop from the previous low still wouldn’t result in a loss.
Even if the war ends, it’s unlikely to fall back so quickly. Using 2.8 as the price, the maximum profit per contract is 2,800, with a margin of less than 50,000 (of course, if futures prices rise later, the margin will increase, but the increase is limited).
0.28 / 5 = 5.6%. For a 42-day period, do you think this return is giving away money?
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Crude oil has sent money.
After three large bullish candles, the price of SC2605P375 rose from a low of 0.85 to 2.8. (The increase mainly comes from a surge in IV)
With 42 days to expiration, the previous low price of crude oil was 418.4, meaning that a 10% drop from the previous low still wouldn’t result in a loss.
Even if the war ends, it’s unlikely to fall back so quickly. Using 2.8 as the price, the maximum profit per contract is 2,800, with a margin of less than 50,000 (of course, if futures prices rise later, the margin will increase, but the increase is limited).
0.28 / 5 = 5.6%. For a 42-day period, do you think this return is giving away money?