Free Online Trading Lessons Archives
How to Get Started in Commodity Option Selling
Selling Commodity Options can be a Higher Probability Strategy, but not if the Proper Steps aren't Taken
Join us to discuss how to get started selling options on futures. In this video, experienced futures and options broker, Carley Garner, outlines the advantages and disadvantages of option selling and highlights the various futures options premium collection strategies, setting up a proper brokerage arrangement, and offers tips and tricks to better the odds of a short option strategy.
Some topics covered in this commodity trading video include:
* Do futures options sellers have an edge?
* Is the unlimited risk of commodity option selling worth the limited reward?
* Is there a right or wrong way to sell options?
* Can premium collection strategies in the futures markets be done with any commodity broker?
* Credit spreads or sell naked options on futures?
* Desired margin to equity ratio for success
* Short option quantity risk control