Better your chances of trading success by selling commodity options



Sell options with strike prices beyond support and resistance

Essentially, an option seller is collecting a premium in exchange for the risk of the underlying futures market trading beyond the strike price of the short option. Placing the strike price of any sold options beyond known support and resistance sounds like an obvious strategy, but it tends to be overlooked as traders seek more premium and disregard risk. Nevertheless, proper strike price placement is a very effective way of shifting the odds favorably.


Pitnews TNT live option selling platform


Know the volatility tendency

Most markets have a particular direction in which they are capable of the most explosive moves. For instance, the stock market tends to take the stairs up and the elevator down. As a result, put options tend to be relatively expensive when compared to calls in the e-mini S&P 500. Even more so, S&P puts are prone to massive panic pricing in a volatile down-turn. However, S&P calls generally don’t have an explosive pricing nature. Crude oil and the grains, are typically the opposite; they have the potential to move higher faster than they can move lower. Knowing this, extra caution should be warranted when selling puts in a quiet S&P environment, or calls in a quite grain market.


Option Selling is not for everybody due to the prospects of theoretically unlimited risk. Yet, it is a strategy that everyone should consider in light of the high probability of success on any particular trade.

*There is substantial risk of loss in trading futures and options. There is unlimited risk in option selling!



DeCarley Trading on Twitter

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
    Read More
  • 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
    Read More
  • 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
    Read More
  • 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
    Read More

Newsletter Trial