Picking Commodity Options Markets Making Price Moves
This article discusses the things you need to know about to profit from commodity options trading.
These key points will help you trade more successfully:
Commodity Option characteristics
Commodity Options Trading Basic Terms
Commodity Options Trading Analysis
The Greeks
1. Commodity Option Trading Introduction
What Are Commodity Options?
An option is a contract that gives you the right, but not the obligation, to either go long or go short the underlying futures contract at a pre-determined entry price on or before a specific date. It lets you take advantage of price moves in the futures markets without actually having a futures position.
There are two types of options, Call options and Put options.
The Call option gives you the right, but not the obligation, to go long the underlying commodity futures contract at a pre-specified entry price on or before a specific date. You would buy a Call option when you believe the futures price will increase.
A Put option gives you the right, but not the obligation, to go short the underlying commodity futures contract at a pre-specified entry price on or before a specific date. A Put option is used when you believe the futures price will decrease. Leggi il seguito di questo post »
