A simple Google or Amazon book search will likely reveal a nearly unlimited number of option trading resources. Unfortunately, most of these sources cater solely to stock option traders. Those assuming they can simply apply the same concepts to commodity options might be in for a surprise.
Stock traders looking to venture into commodities often opt for the most convenient form of price exposure, commodity ETFs. Others who have done their homework might choose to trade futures on a low leverage basis but do so in their stock trading account. In either case, these commodity speculators are overlooking some more efficient means of commodity speculation. Convenient trading vehicles are generally not optimal.
Join us to discuss the advantages and disadvantages of popular commodity trading vehicles such as ETFs and futures. We’ll also point out some commodity market characteristics that make speculating in such markets different from stock speculation.Read More
Many traders interested in migrating from stocks to commodities assume their stock option trading skills will translate into the commodity markets. However, despite the fact that calls and puts have similar mechanics regardless of the underlying instrument, their similarities stop there. Differences in trading logistics, environment, and characteristics can put unprepared traders at a disadvantage. That said, those with proper education and familiarity might find some glaring advantages to trading options on futures relative to stock options.Read More
In this book on commodity trading, experienced commodity broker Carley sheds light on topics rarely discussed in futures trading books. Here is a sneak peak of what it has to offer. This video scratches the surface of the following topics:
* Is the trend really your friend?
* Swing trading - "Buy" fear and "sell" greed
* Rethinking stop loss orders and risk management
With the price of crude oil softening, Jim Cramer turned to Carley Garner of DeCarley Trading for guidance on where the price of WTI oil traded on the New York Mercantile Exchange might be headed. According to her analysis, despite oversold technical oscillators, the path of least resistance is likely lower. She even reveals the most likely reversal point according to her analysis.Read More
A covered call strategy is often considered a relatively conservative approach to stock market investing because it offers traders additional portfolio income and a hedge against downturns. However, traders hoping to simply apply the same approach to the commodity markets might be surprised. Due to logistic and mechanical differences between the stock and commodity markets, it is imperative that the traditional covered call strategy is modified for use in the commodity markets. Join us to discuss the necessary modifications to a covered call strategy to make it appropriate for commodity traders, how to calculate profit, loss, and risk, and tips and tricks to proper strategy development.
*Many topics discussed in this session are featured in Carley Garner's new book on commodity trading, "Higher Probability Commodity Trading."Read More
The strategy of writing covered calls against a stock portfolio is a popular investment strategy assumed to provide long-term investors with additional income and a dash of conservatism. However, those who attempt to recreate the strategy in the futures and options markets are often dished a rude awakening. Due to natural leverage built into the commodity markets, the typical covered call strategies must be modified. Join us on August 2nd to discuss the practice of selling call and put options against antagonistic futures positions as a means of premium collection.
*Many of the topics discussed in this video are featured in Carley Garner's newest book, Higher Probability Commodity Trading!Read More
"A great read for both beginner and advanced commodity traders. Carley nails the seemingly impossible task of leveling the playing field by imparting vital concepts in easy to digest bites ...she doesn't leave out the harsh realities and heartbreak many overzealous speculators face." -- JON NAJARIAN, co-founder NajarianFamilyOffice.com
"I love the book... it's an MBA in trading for the price of a few cups of Starbucks! I have been in financial markets for 30 years and I learned many new strategies and ideas...Bravo!" -- Tobin Smith CEO & Founder Transformity Media Inc., Former Co-star of Bulls and Bears on Fox News
For additional information on Garner's latest title, visit www.HigherProbabilityCommodityTradingBook.com!Read More
Looking at charts is often helpful to determine the trajectory of a given stock or commodity. That is why Cramer turned to Carley Garner, a technician and commodities expert who is the co-founder of DeCarley Trading and a colleague at RealMoney.com.
Day trading futures outright is one of the most difficult forms of speculation with little room for error, a generally high leverage, and fierce competition.Read More
Most traders, in both the stock and commodities markets, are familiar with the concept of the VIX volatility index, but they habitually overlook the unique characteristics of the futures contract. Unfortunately, this innocent lack of preparation can result in expensive trading lessons!
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I’ve been a commodity broker since 2004. Throughout that time we’ve seen massive shifts in the manner retail traders execute orders in the futures and options markets, but more importantly we’ve seen transaction costs plummet due to massive improvements in execution efficiency.Read More
The practice of option selling is a controversial strategy for commodity option traders to partake in. Many brokerage firms outright forbid the practice; others allow it, but there are often strings attached. However, there are a limited number of brokerage services that recognize despite the challenges of option selling, it likely offers the highest long-term prospects for successful trading. Accordingly, such brokers give their clients the freedom to implement a short option strategy. We are a part of the minority commodity brokers that believe our clients should be given the opportunity to sell options without hassle. Nevertheless, option selling is far from an “easy-money” venture; there is a reason many brokerage firms shy away from option selling.Read More
Nevertheless, there are some compelling arguments to suggest that option sellers face favorable odds of success over option buyers, or outright futures traders. But, even putting the odds in your favor doesn’t guarantee a favorable outcome. Here are some aspects of option selling that should be considered before employing a premium collection strategy.Read More