US Crop weather, the June WASDE report and an ever changing picture in Europe will dominate the headlines this week in the grain and oilseed markets. The trading for the week will start out on a positive note, as European politicians were presented with a request from the Spanish Government for a bailout of approximately… Read more.
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.
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.
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.
What is a Long Option Straddle? A long option straddle consists of purchasing both a call and a put option at the same strike price with the same expiration. The options are generally purchased at-the-money. If they were not, it would show directional bias to whichever option was purchased in-the-money. Since both options are being… Read more.