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Posts Tagged ‘spreads’

Futures Option Spreads - Delta Neutral Trading

By DavidRivera • Nov 13th, 2008 • Category: Options

Futures Option Spreads - Delta Neutral Trading
by David Rivera
There are many ways to trade futures option spreads. One way is to trade spreads that can profit from time decay. You can sell options which you believe will lose more time value than the options you buy.
Another way is to buy and sell options based on [...]



Option Spreads: Putting the Odds in Your Favor

By RickThachuk • Oct 2nd, 2008 • Category: Options

Option Spreads: Putting the Odds in Your Favor
by Rick Thachuk
[ A version of this article appears in the Feb 2000 issue of Futures magazine. ]
Option spreads, created by buying an option and simultaneously selling a related option, are seldom the choice investment vehicle of position traders, especially beginning traders, largely because of their intuitive [...]



How to Construct a Put Option Ratio Spread

By CarleyGarner • Sep 26th, 2008 • Category: Options

How to Construct a Put Option Ratio Spread
by Carley Garner of www.DeCarleyTrading.com
Options are eroding assets; therefore it isn’t always wise to spend a lot of money to purchase an option that will face depreciation as well as dismal odds of success. Instead, it is often a better idea to sell options of different types or [...]



How to Build a Successful Trading System (part 6)

By JakeBernstein • Sep 3rd, 2008 • Category: System Trading

Systems Trading (part 6) By: Jake Bernstein www.trade-futures.com
Plunge Headlong into the Market Without a Plan of Action
This is an excellent to way to lose money and to lose it quickly.
Why make a plan anyway? Would you drive from New York  to Los Angeles without a map?  You could.  And you might be lucky enough to [...]



 

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THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER
WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.
THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU.
THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.