Free Online Trading Lessons Archives
Trading Commodity Options with Creativity
Trading Commodity Options with Creativity: How to use the market’s money to finance speculations in the futures markets.
Options are priced to lose. Thus, habitually buying options require impeccable timing and a little luck to succeed. However, traders might benefit from the use of option spread strategies aimed at using the market’s money to purchase long calls and puts. In short, speculative option purchases can be financed by the sale of an eroding asset. Of course, this approach isn’t without its disadvantages and opportunity costs but in the right circumstances, there are low and limited risk ventures with potentially attractive payouts. Come find out how to creatively use calls and puts ad building blocks to create strategies with various risk and reward prospects. Highlights include:
• A crash course in option mechanics.
• An unconventional but logical approach to option trading.
• How to create custom delta positions with long and short call and puts.
• FREE option trades built for leverage and profit potential.
• Debit option spreads aimed at keeping risk low and limited.
• Trading examples.