Free Online Trading Lessons Archives

Covered Calls and Puts on Futures Trading Video

Free commodity trading video:

Applying a Covered Call or Put Strategy to Leveraged Futures

Trading futures contracts outright can be a risky proposition. Not only is it difficult to predict the direction of prices, but it is even more challenging to time entry and exit from the market.traderplanet

We invite you to view the archive of a webinar we presented to introduce the concept of using commodity options to hedge the exposure of holding long or short futures contracts. Although stop order placement is a popular risk management technique, some traders believe such an approach may act as a limitation obstacle. After all, stop loss orders on futures contracts are only executed if the commodity market moves adversely to the position. In addition, they tend to be elected on sharp, but temporary, moves resulting in unnecessary trade liquidation at unfortunate prices. Perhaps a more viable strategy is the practice of selling commodity options against (in the opposite direction) long or short futures contracts. Doing so works toward a reduction of position volatility, shifts risk further away from the current market price, provides lasting power during adverse market moves, and can potentially increase the potential of a commodity trade.

This class covers the following topics:

• Covered calls in stocks vs. futures
• Constructing a bullish or bearish futures strategy hedged by short options
• Using technical and seasonal analysis to increase the odds of success of a covered call or put strategy
• Determining the quantity of short options for each futures contract
• Understanding position delta, and determining a neutral or directional bias
• Being aware of the risk of a runaway market and/or excessive commodity market volatility


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Carley Garner Trading Books

  • Higher Probability Commodity Trading, new Carley Garner book

    Higher Probability Commodity Trading, new Carley Garner book

    According to Phil Flynn, Fox Business News contributor, this is Carley Garner's "masterpiece"! Order from Amazon today! "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 "I love the book... it's an MBA in trading for the
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  • Commodity Options the Book

    Commodity Options the Book

    It isn't free, but it's close! If this book saves you 2 ticks, you've recouped your investment.   Commodities are hot, as Jim Rogers would say.  Stagnant stocks and the massive bull rally in raw commodities have lured much of the attention away from Wall Street and toward down-town Chicago.  It is difficult to turn on the television or open the newspaper without being reminded of the impact that commodity prices have on our daily lives.   Traders
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  • A Trader's First Book on Commodities

    A Trader's First Book on Commodities

    The Simple, Practical, 100% Useful How-To Guide for New Commodities Traders   Before you trade commodities, you'll need significant practical knowledge of the associated risks and market characteristics. That's where this book comes in. You won't find boring theory or bewilderingly complex trading strategies here. Instead, you will find specific guidance on accessing commodity markets cost-effectively, avoiding common beginners' mistakes, and improving the odds of successful trades. Drawing on her extensive experience teaching traders, Garner shows how to
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  • Currency Trading in the FOREX and Futures Markets

    Currency Trading in the FOREX and Futures Markets

    Get a copy of Carley Garner's latest book at, or any major outlet! "Once again, Carley Garner demonstrates her ability to boil down complex concepts for individual traders. Trading Currencies in the FOREX and Futures Market will put budding currency traders ahead of the curve with its unique blend of the basics and some refreshingly unexpected material." ~ Karris Golden, Traders Press® "Carley is a smart trader and broker; she understands the markets and the importance of
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