(1) The selling of an option futures contract. (2) A trader whose net position in the futures market shows an excess of open sales over open purchases (see
"long").
Usually refers to a simultaneous purchase of a contract and sale of another. Spreads can be transacted between contracts with the same underlying commodity but different months; the same month but different commodities; or the same month and com-
modity but traded on different exchanges.
In price forecasting, the use of charts and other devices to analyze price-change patterns and changes in volume and open interest to predict future market trends (opposite of fundamental analysis).
In options, the value of the premium is based on the amount of time left before the contract expires and the volatility of the underlying futures contract. Time value represents that portion of the premium in excess of intrinsic value. Time value diminishes as the expiration of the option draws near and/or if the underlying futures becomes less volatile.
All market data is provided by Barchart Solutions. Futures: at least 10 minute delayed. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice.
To see all exchange delays and terms of use, please see disclaimer.
