Options, by definition, are a wasting asset. Many first-time option investors learn this fact the hard way by watching their option contracts expire worthless.
Using Spreads to Sell Option Premium
This article was originally written by Jeff Coglianese on September 02, 2005. With the majority of options expiring worthless, many traders are interested in selling options. Options are a wasting asset. With no change in any of the underlying assumptions, an option will lose part of its value everyday until the option expires worthless. Time… Read more.
Why Trade Spread Options?
This article was originally published on June 17, 2005. Many traders are attracted to options on commodities. They typically prefer the limited risk–premium paid plus commission and fees–and unlimited profit potential features that are exclusive to buying long options outright. The problem with buying options outright, however, is that many traders buy out-of-the-money options because… Read more.
How to Use Options in a Volatile Market Climate
This article originally appeared in FutureSource’s Fast Break Newsletter on December 16, 2005. Today’s volatile markets offer many opportunities. Along with these opportunities come risks. The greater the volatility in a market, the bigger the risk. Many savvy investors are drawn to the options markets as a way to take advantage of large price swings… Read more.
Forget What You Thought You Knew About Buying Futures Options
This is a revised version of an article that originally appeared in FutureSource’s Fast Break Newsletter on September 24, 2004. Have you purchased an option position in the past, and had the market move in your favor, only to ultimately lose money on the trade? Read this article and you might get some answers about… Read more.
Developing a Commodity Futures Trading Strategy and System
This is a revised version of an article that originally appeared in FutureSource’s Fast Break Newsletter on April 08, 2005. The futures markets are exciting and attractive to many individuals. However, potential traders are faced with the daunting task of determining how they should make their trading decisions. Potential traders need to develop a trading… Read more.
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