There are various exotic option strategies with different objectives and theoretical scenarios. I’m going to walk you through the basics in detail, while keeping these complex instruments as simple as possible! In addition, over the next few weeks, we will cover a few prime options strategies for futures traders that benefit from the leverage and… Read more.
Search Results for: options
The Origin and Evolution of the Commodity Futures Market: Part I
The 1983, Eddie Murphy and Dan Aykroyd’s film, “Trading Places”, is a hilarious account of the ups and downs of the commodity futures market. Randolph Duke, Senior Partner of an established commodity brokerage firm, explains to Billy Ray Valentine (Eddie Murphy) just what exactly commodities are and how they are traded: “Now, what are commodities?… Read more.
Futures Spread Techniques: Butterfly Futures Spread
Savvy traders, who understand the term structures of futures markets, often use the butterfly futures spread to isolate certain contracts in which they feel demand or supply will be the strongest or weakest.
Ag Apps for Smart Phones
The Van Trump Report is a great source for farmers, producers, end users and grains traders. Kevin Van Trump has made it his goal to help provide those in the Agricultural Business with the latest and most comprehensive news, information, commentary, and marketing strategies in the industry. If you find this information useful, we highly… Read more.
Know Your Trading Lingo: A List of Terms to Help You Speak Our Language
As you start following the futures markets, you will find that brokers, traders, and individuals in the futures/commodities industry have certain “speak”. Much like the military, where exotic terms for everything are the norm, traders have their own language that could confuse a beginner. Specific market terms are difficult to comprehend at first but are… Read more.
What’s Your Margin to Equity Ratio?
Margin Requirements Are Not Recommendations Many consider the leverage involved with futures to be a blessing and a curse. There are few investing environments that will give an individual investor as much leverage as they can receive from an FCM and exchange — those responsible for setting margins. For example, one clearing firm we work… Read more.
Credit Spreads: A Way to Collect Premium with a Defined Risk
Many traders are familiar with collecting premium by selling options, and it has proved to be a profitable strategy. However, the unlimited risk that comes with selling options has kept many on the sidelines, even if they have a strong option on where a market won’t go. Credit spreads offer you the ability to collect… Read more.
Crude Oil Futures FAQ
Futures contracts, including trading in crude oil futures, are financial instruments that carry with them legally binding obligations. Buyer and seller have the obligation to take or make delivery of an underlying instrument at a specified settlement date in the future. Oil futures are part of the derivatives family of financial products as their value… Read more.
Is Option Selling the “Write” Strategy for You?
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.
Long Option Strangles: Another Play on Potential Volatility
All too often I hear about traders missing “The Big Move” because they fear losing money in a volatile market. This is a very real fear and one to be respected. However, if the traders had known about long option strangles, they would have been able to participate with a known risk. This article will… Read more.
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