|
Those traders who desire to minimize the risk involved with trading will find
appealing the strategy of buying out-of-the-money options. A position can often be established for just a few hundred dollars, or less.
And when you buy options, that's the most that you can lose (plus transaction fees).
However, these options are regarded as being "long shots" as they rely on a significant move of the
underlying futures price in order to have intrinsic value. As such, it becomes important to filter trades so as to help
improve the odds of success.
In this 43-minute video, you'll learn directly from a commodity trader who employs this option strategy what are the criteria for
determining when is a good time to buy out-of-the-money call options, done in anticipation of a substantial
market rise, and when is a good time to buy out-of-the-money put options, done in anticipation of a market price collapse.
Specifically, you'll learn:
- Timing the option purchase based on price levels and volatility considerations.
- Determining the strike price, expiration and option premium.
- Actual trade example of buying out-of-the-money calls on sugar.
- Actual trade example of buying out-of-the-money puts on orange juice.
- A market that is on the "watch" list.
- Practical insights into implementing this option strategy.
|
This video is presented by Rick Thachuk, President of World Link Futures, Inc. and made free of charge thanks to the sponsorship
of Alaron's Futures Training Division. To access this free online video, please complete the information below.
Name:
Phone (please specify Day or Evening):
Mailing Address:
Email Address:
Please be sure to enter correctly.
|