A few months back, the CME Group launched weekly grain options for corn, wheat, and soybeans. On Sunday, September 25th, the CME Group will introduce Live Cattle and Soybean Oil/Meal weekly options. These options, short term in nature, will trade just like the monthly options that we all know. Each weekly option will have a… Read more.
Know Your Limits: Day Trading Limits Explained
There are some pretty significant differences between the futures markets and the equities markets. The first big difference is the trading hours: the futures markets trade 23 hours a day for most markets versus an 8:30 AM (central time) open and a 3:00 PM close in the equities markets. The second difference is the ease… Read more.
Spread Your Wings with a Butterfly Call Spread
A butterfly option spread is a multiple option position that involves the simultaneous purchase of calls or puts with the sale of calls or puts. The way the spread will be established will depend on how bullish or bearish one is on a market. The same rule applies with other option strategies; there is no… Read more.
Credit Spreads: Collect Premium While Keeping Your Clothes On
Readers of this blog should be very familiar with option spreads. We have written in the past (Option Spreads Examined Further: Measured Ways to Play Your Market Hunch, Bear Put Spreads: An Alternative to Purchasing Puts, and Bull Call Spreads: An Alternative to Purchasing Calls) about the different ways traders can participate in leveraged markets… Read more.
Using Market Correlation Data to Diversify Your Portfolio
As most investors know, hundreds of strategies and ideas exist which can be used to capitalize on any market. Undoubtedly, everyone has a different way of putting his or her money to work. Because of the development of modern portfolio theory in the country’s best management schools, one investing behavior that every money manager encourages… Read more.
Wheat By Any Other Name…
When it comes to trading wheat futures, it is paramount to know the types of wheat is out there and where to trade each variation. As the summer begins to arrive along the southwestern plains, news continues to come out about the drought and hot temperatures there creating a poor quality crop. The speculator in us all tells us to buy wheat as the supply coming online will be small and poor in quality.
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