Options on futures were introduced in the 1980s. An option contract allows you the right, but not the obligation, to buy or sell an underlying futures contract at a particular price.
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American Put Options
Additional Forward and Futures Contract Tutorials
American Call Options
Additional Forward and Futures Contract Tutorials
Put and Call Options
Options allow investors and speculators to hedge downside (or upside). It allows them to trade on a belief that prices will change a lot–just not clear about direction. It allows them to benefit in any market (with leverage) if they speculate correctly. This tutorial walks through option basics and even goes into some fairly sophisticated option mechanics.
Futures & Options 101
If you’re a newcomer to the futures markets and want a quick introduction to futures and options, these lessons will get you started learning what you need to know.
Futures & Options Strategy Guide
Using futures and options, whether separately or in combination, can offer countless trading opportunities. This guide provides 25 commodity trading strategies as a starting point.
Basic Agricultural Hedging with Options
Hedging agricultural crops using options can be a very useful risk management tool if used correctly. The number one focus of any grain producer’s marketing year is to make “cash sales” at the best possible price. However, this is much easier said than done. Why? Because we can’t predict the future. Therefore, savvy producers use… Read more.
Basic Mechanics of Agricultural Options
Learn about Agricultural Options!
Deep Out-Of-The-Money Options: A Calculated Risk
The trading strategy of purchasing a deep out-of-the-money call or put option has been referenced as purchasing a “lottery ticket”. Both present an opportunity for profits but with a low rate of success. Depending on how far out-of-the-money the strike price and time remaining until expiration, it would take a considerable move in the underlying futures market to profit.
Eliminate Report Risk: Use Weekly Options to Hedge Short Term
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.
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