Many traders have heard about an option’s delta, but they have no idea what it means or how they can implement it in their own trading strategy.
Tips & Strategies
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.
Trade Management Essentials: The Exit – Managing Stops and Targets
This article orginially appeared on June 04, 2010 in FutureSource’s Fast Break Newsletter, where Brian is a regular contributor. How difficult do you find it to enter into the market? If you think about it, “getting in” is not that difficult. The common problem that many traders face is not getting into a trade… the… 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.
Locking in Profit by Purchasing Options
One of the most common things you’ll hear a futures trader say is, “Make sure you lock in profits with stops!” One thing some traders don’t realize is that you can lock in profits with options as opposed to using just a stop loss order. This article will focus on how locking in profits is… Read more.
Using Covered Calls and Puts to Gain Trade Management Flexibility
A covered call/put is an option strategy used by traders who hold a long/short futures position and sell a call/put option on the same underlying futures.
Bear Put Spreads: An Alternative to Purchasing Puts
Options are a great way to get involved with the futures markets. One of the most popular ways to trade with options is to buy puts.
Bull Call Spreads: An Alternative to Purchasing Calls
Options are a great way to get involved with the futures markets. One of the most popular ways to trade with options is to buy calls.
Hedging by Purchasing Options: A Margin Free Way of Risk Management
Talk with any hedger and they’re sure to tell you about an experience with trading on margin. Margin is a good faith deposit that a hedger must have in their account in order to initiate a long or short futures position. For example, the margin on a corn contract is currently $2,362.00. This means that… Read more.
5 Tips for the Option Buyer
Tip 1: Have an exit plan. It seems very elementary, but some traders will spend numerous hours looking for opportunities to enter a market, but put no thought into how and when they are going to exit. Whether you base your trading decisions technically or fundamentally, you will need to know when you are going… Read more.
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