Investing in any financial instrument includes the risk of losing capital. Some investment strategies have a higher degree of risk than others, which also implies a higher potential for reward. It is important for the individual trader or investor to understand his or her risk tolerance with respect to the trading and investment vehicles they… Read more.
This is a sample entry from Brian Cullen’s email newsletter, The Cullen Outlook. August / December CRUDE OIL spread I am looking to take advantage of some supply and demand issues as we get past the spring months and fresh into summer. The country will begin to USE reserves in the front months (SELL July… Read more.
This is a sample entry from Brian Cullen’s email newsletter, The Cullen Outlook. June mini-SP I am looking to take a shot at the downside of the stock market via a put spread. I think traders would very much like to see 15,000 print in the DOW (1600 in SP) and then their attention will… Read more.
As many basketball fans may know, the Miami Heat recently had a 27 game winning streak, which was the 2nd longest winning streak in NBA history. It ended on Wednesday, March 27, 2013 when they visited my Chicago Bulls in a game that a lot of folks thought the Heat should have won easily. The… Read more.
As we are all aware, tax season is now upon us and I am sure everybody could use some relief from the tax man, so what better time to learn about the tax advantages of futures trading! Most experienced traders may understand the differences between trading stocks versus futures and the benefits each offers depending… Read more.
A commodity option contract is a decaying asset that will expire. As an option contract draws near its expiration date, set by the exchanges, both the time value and intrinsic value diminish. Time value is premium in relation to days until expiration. Intrinsic value is the premium in relation to the strike price’s distance from underlying futures contract price.
It is essential to understand option expiration, exercising, and assignment as a commodity option trader. Know these principles, whether purchasing outright calls or puts, selling or “writing” option contracts, or using complex option spread strategies. Not only will you be better equipped for such events, but also having this acumen could potentially improve your trading performance.
I think it’s human nature to be a contrarian, especially among traders. Sometimes that’s a good thing—life would be boring if we all thought the same thing and there wouldn’t be any markets if everyone agreed on a “fair price”. However, it is healthy for your trading health to know when not to be a contrarian and money can be made by going with the flow.
Written by DeWayne Reeves of CFRN.net. Burton Schlichter is a partner and featured broker at CFRN.net. If you think training is expensive, wait until you see the tab for ignorance. Find a broker who is willing to invest both time and money towards your success. Write a business plan just as you would for any… Read more.
In the 80’s, the US T-Bond contract was the most liquid market. The bond pit at the CBOT was so crowded that you could not turn around. There was a bit of intrigue with commodities. It was deemed “not a prudent man’s investment vehicle” — it was for the aggressive investor. It was not a… Read more.