Buying an option on Crude Oil

[lonny]

Originally posted to economics forum but suggested over here may be more appropriate...

I reckon crude oil will shoot up a lot higher than its current price in the next 6months to 1year time frame. I wouldn't mind buying a cheap oil call option dated to expire some time next summer with a strike around $100. Then, given peak US driving season + strong growth in China etc, hopefully cash in with oil well above $100.

I've been looking around IGindex and the like and and they don't seem to offer options. I really just want a simple option; pay the premium today and forget about it until it either pays off next summer or it doesn't. I don't want to be bothered with margin calls or anything like that involved if I buy a future.

So any suggestions? It's really annoying; i've worked on loads of IT systems to do this sort of stuff but never for the retail customer. I'd like to put in about £1000 if possible.

[limpsfield]

Here are the prices

http://www.cmegroup.com/trading/energy/crude-oil/l...

Seems to be 3.80 for a $100 call for August. You will need an account with a futures broker. But if you have an account with IG it is worth giving them a call to see if they will make you a price this far out

[matsmith]

you can deal on covered warrants on barclays stockbrokers etc, theres no warrant for nymex only brent

the other possibility would be to buy an etf but that is impacted by contango and currency. not sure if this is also the case on covered warrants but may be worth noting

[DjSki]

As above, wouldn't bother with an ETF, they don't track spot. If you want to deal futures min contact as far as I know is $50k.