RE: [Metastockusers] Futures / Options comparison

[<uhehs@xxxxxxxx>]

So wait, I have a current quote on YM M4 as 
10,296.

Can you explain the logistics of how it
cost per contract, etc.

 

I assume $10,296 per contract?  How about
buying the mini’s?

 

<font size=2 color=black
face=Tahoma>-----Original
Message-----
From: Jay T
[mailto:JaysTownsend@xxxxxxx] 
Sent: Thursday, March 18, 2004
3:48 PM
To: Metastockusers@xxxxxxxxxxxxxxx
Subject: Re: [Metastockusers]
Futures / Options comparison

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<font size=2 color=black
face=Verdana>A future
contract is an option/contract to buy or sell.  An option on a future is
an option on an option.





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<font size=2 color=black
face=Verdana>Theoretically
the price of a future contract is the current cash price, plus any storage cost
(for hard futures) through to expiration, plus any interest
charges that would be incurred if you had to borrow money to purchase
the futures contract through to expiration.  Some folks trade solely on
the disparity between this theory and the price difference in the markets - a
future to current price arbitrage.





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<font size=2 color=black
face=Verdana>You can buy a
June, September or December contract based on your predictions.  For hard
commodities if you carry the contract through to the expiration date you take
delivery of the goods (box car full of wheat on a wheat contract, for example). 
That isn't as bad as it sounds - they don't deliver it to your front
door.  For financial futures you get your account credited or debited the
difference in the value of the contract at the time of expiration vs. what you
paid for it.  In financials it's really 'legal' Las Vegas time, in
hard goods it's delivery time.





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<font size=2 color=black
face=Verdana>Jay







<font size=2 color=black
face=Arial>----- Original
Message ----- 





<font size=2 color=black
face=Arial>From:<font
size=2 face=Arial> <a
href="" title="mailto:uhehs@xxxxxxxx";>uhehs@xxxxxxxx 





<font size=2 color=black
face=Arial>To:<font
size=2 face=Arial> <a
href=""
title="mailto:Equismetastock@xxxxxxxxxxxxxxx";>Equismetastock@xxxxxxxxxxxxxx
; <a href=""
title="mailto:Metastockusers@xxxxxxxxxxxxxxx";>Metastockusers@xxxxxxxxxxxxxx
; <a href=""
title="mailto:Sunday_Traders@xxxxxxxxxxxxxxx";>Sunday_Traders@xxxxxxxxxxxxxx






<font size=2 color=black
face=Arial>Sent:<font
size=2 face=Arial> Thursday,
March 18, 2004 10:09 AM





<font size=2 color=black
face=Arial>Subject:<font
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[Metastockusers] Futures / Options comparison





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<font size=2 color=black
face=Arial>As
a rookie on the Futures scene:

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face="Times New Roman"> 

<font size=2 color=black
face=Arial>Do
futures have a diminishing time value component like stock options do?

<font size=2 color=black
face=Arial>Am
I able to buy and series I want?  EX: Can I buy out to June, September or
December based on my predictions?

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face="Times New Roman"> 

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face=Verdana> 



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