"We developed the new sugar and cotton OFS products to facilitate the substantial amount of growth in options we’ve experienced here at the exchange,” said Joseph J. O’Neill, NYBOT Senior Vice President. “We’re very pleased with today’s successful first day of trading, and we plan to offer additional OFS products to our option community later in the year.”
The OFS contracts were developed in response to the rapid growth in options trading at the exchange and the demand for more complex option-based products. Options help traders manage their risk, as well as presenting them with opportunities created by that same volatility. Options on Futures Spreads allow traders to manage a single position instead of two and pay only one premium for that single instrument. Where a regular option contract gives the buyer the right, but not the obligation, to establish a futures position at a pre-determined price level, an OFS gives the buyer the right, but not the obligation, to establish a spread position at a pre-determined spread price between the two futures contract months.
For more information on Options on Futures Spreads contact Tim Barry at tbarry@nybot.com or +1 212-748-4096.
The New York Board of Trade (NYBOT) is New York’s original futures exchange, where the world trades food, fiber and financial products. For well over a century, the New York Board of Trade has provided reliability, integrity and security in a global marketplace for cocoa, coffee, cotton, ethanol, orange juice and sugar, as well as currency and index futures and options. Information about the New York Board of Trade can be found at www.nybot.com and www.nybotlive.com.
