Sell 5-Year note futures contract, buy a call option for insurance
This recommendation was emailed to DeCarley Trading
brokerage clients on April 17th 2015
***There is substantial risk of loss in trading futures and
****Past performance is not indicative of future
On the radar:
* A minor flare up in Greece concern seems to have created a
high probability bearish opportunity Treasuries. We like the
idea of using a cheap, and limited risk, play in the 5-year note in
hopes of a trend reversal.
What can we do for you? If you answered "YES" to any of these questions, we might be the right commodity broker for you.
1.Are you trading on your own at a deep discount futures broker and consistently losing money? We cannot guarantee that you will make money trading with DeCarley, but whether you prefer self-directed online trading, or broker assisted order entry, we can guarantee that we will work hard to give you the information that you need to increase your odds of success. If you let us, we strongly believe that through DeCarley Trading client newsletters and with our multiple years of experience, we can help you to achieve your goals by encouraging patience in market entry as well as utilizing trading strategies with higher probabilities of success. If you are already struggling to make money, what do you have to lose?
2. Are you struggling with platform choices, margin variations, and the confusion of data vendors and order routing? We've done the leg work for you! Just let us know what type of trader you are and what you priorities will be; we will be more than happy to point you in the right direction in regard to choosing an appropriate platform and clearing arrangement.
3. Do you have a full time job, but want to trade futures and options? Let DeCarley help you monitor the markets and your trades. We are available nearly 15 hours per day throughout the trading week. All the while we are available to give quotes and market commentary over the phone and even send emails and text price alerts*.
4. Are you trading savvy, but not familiar with the mechanics of the commodity options and futures markets? Let us help you navigate the markets by steering you clear of illiquid contracts and offering "tricks of the trade" when it comes to the best price execution. We have direct access to the open outcry pits to execute options and option spreads, most discount online firms can't offer that. In volatile conditions, this could make a significant difference in fill quality! In addition, our relationship with floor brokers enables us to provide our brokerage clients with opinions and commentary derived directly from those standing in the trading pits.
5. Are you an option seller that can't seem to find a cooperative brokerage firm? Many brokerage firms frown upon short option selling accounts simply because they tend to involve low trading volume and theoretically unlimited risk. However, we believe short option trading (the right way) provides traders with attractive odds of success and promotes a client base that will be around for the long-haul. Accordingly, we have worked hard to provide our clients with favorable clearing and margin arrangements for short option trading that both online and broker assisted traders might have trouble getting on their own or with other brokers.
6. Do the flashing lights of a commodity trading platform encourage you to over-trade your account and in turn promote trading losses and massive transaction fees? Some of our clients are experienced traders with years of market analysis and strategy under their belt. However, they find that placing trades through a broker, as opposed to clicking and trading online, is a useful mechanism to control the human tendency to stray from a trading plan or strategy or even become too aggressive (over-trading). If paying a few dollars more per round turn can avoid paying thousands of dollars in excessive discount trading commissions and market losses, it is money well spent!
DeCarley Trading offers experienced and dedicated brokerage services at competitive commission rates (email us for details on Online Pro rates, you might be surprised). We aren't the cheapest, but we aren't far off and we work hard to deliver the service you deserve! Click here for details on the services we provide. Does your brokerage do this for you?
If you would like to open a trading account to work directly with Carley Garner or to trade online using one of our state-of-the-art trading platforms, click here.
* Minimum account balance or commission for price alert service.
**THERE IS SUBSTANTIAL RISK OF LOSS IN TRADING FUTURES AND OPTIONS!
Carley Garner and Jim Cramer analyze the S&P
Jim Cramer's "Off the
Charts" segment on CNBC's Mad Money used Carley Garner's
S&P analysis on the March 19th show!
"An important factor to take into consideration is the strong floor
of support that the S&P has at 2040. Garner thinks that as long
as the market stays above this floor of support, we are good to
go." ~ Jim Cramer
DeCarley Trading works hard to provide clients with quality
insight into the markets. One of our recent issues of the
DeCarley Perspective focused on this topic was featured on CNBC's
Mad Money on March...
Click here to watch the archive of our TraderPlanet webinar: An Alternative Look at the Trading Plan
Carley Garner, commodities analyst, broker and author of "A Trader's First Book on Commodities," discusses the challenges of system trading, the necessity of human intervention in trading, choosing the right trading vehicle for you, timing, and risk-reward management. Join us to discuss: • “Trade” a trading system? • Trend trading vs. swing trading • Seasonal, technical, and fundamental analysis • Risk management • Trading size • Options, futures, or both?
Weekly options are simply options that expire at the end of each
week, rather than once a month, or less, as traditional options
typically do. The CME Group has listed weekly options on
their most popular complexes such as Treasuries, Grains, and stock
indices. In each of these products, the weekly options expire
on the Friday of each trading week that is not already an
expiration day of the standard (monthly) version of the...
Premium collection income strategy, credit spreads
Option Selling with, or without, Insurance?
In today's markets, naked option sellers have been searching for alternative methods of collecting premium. However, the debate is still out on whether credit spread trading fairs better in the long run. View video below to learn about the advantages and disadvantages to option selling with insurance, and to determine whether or not this is the strategy for you.
Key points covered in this presentation:
* What is a credit spread and/or an Iron Condor? * What is a calendar option spread? * What are the advantages of using credit spreads, condors, and calendar spreads? * In what scenarios do credit spreads make the most sense? * The opportunity cost of using credit spreads * BE calculations and margin comparisons * Understanding the REAL risk of trading credit spreads and condors * Determining whether or not credit spread trading is for you
*There is substantial risk of loss in trading futures and options!
Trade Futures in an IRA
Trade Commodities in an Individual Retirement Account
While we would never advocate a large percentage allocation of
your retirement funds to commodity trading via self-directed,
full-service or even managed futures accounts; there are definite
benefits to trading funds earmarked for commodities in a retirement
The most prominent example being tax deferred or tax free growth
depending on the type of qualified Independent Retirement Account
(IRA). In theory, trading accounts within the shelter
of a tax friendly IRA have the potential to grow at much more rapid
speeds relative to those in a non-qualified account (outside of the
However, it is important to note that the advantages of an IRA
enjoyed by profitable traders becomes a burden for those that are
less fortunate in the markets. Unlike losses in a non-
qualified account, IRA losses are not tax deductible.
Additionally, there may...
You are free to choose any custodian that you see fit, but we recommend AdvantaIRA Trust because they offer very competitive custodian fees. Complete both of the applications below and submit them, along with a picture ID, by scan and email, fax, or mail to:
We are honored to have DeCarley Trading recognized by TraderPlanet in the "Best Brokerage Service" for 2014!
DeCarley Trading works tirelessly to provide superior futures and options brokerage services for traders of all types and sizes at competitive rates. We are humbled, and ecstatic, to be recognized for our efforts in the 2014 Trader Planet STAR awards.
*THERE IS SUBSTANTIAL RISK OF LOSS IN TRADING FUTURES AND OPTIONS.
DeCarley T-Bond Chart Analysis on Mad Money on CNBC
Cramer's "Off the Charts" segment on CNBC's Mad Money used
Carley Garner's Treasury and U.S. Dollar analysis on the January
"We could soon see a major decline in the dollar and the price of
U.S. Treasuries, which would translate directly into a significant
rebound in interest rates. That would be a very big deal." ~ Jim
DeCarley Trading works hard to provide clients with quality insight
into the markets. One of our recent issues of the DeCarley
Perspective focused on this topic was featured on CNBC's Mad Money
on January 13th. The DeCarley Perspective is a publication
distributed exclusively to...
It is naive to assume that seemingly unrelated markets move
independent of each other. The financial and commodity
markets are littered with
relationships that might be helpful for those attempting to
speculate on price changes. Further, simply assuming that the
historical relationship you once read about in college textbooks is
consistently valid is a mistake. At the hands of
Traders are often attracted to the allure of day trading.
After all, closing positions at the end of the day provides small
accounts access to leveraged markets with very little cash on
hand. In addition, day traders have the luxury of knowing
catastrophic events occurring while they are sleeping will have no
impact on the value of their trading account. However, these
luxuries come with strings and day trading is arguably one of the
The decision to trade online or through a full service broker will undoubtedly make a large impact on your bottom line. However, the impact may or may not be what you had in mind. If you aren’t ready to begin placing your orders online on your own, despite saving money on commission it may be the most costly mistake that you ever make.
While commission is baggage, a slightly higher rate it may be worth every penny assuming that your broker is truly giving you what you are paying for…reliable and efficient execution along with quality guidance in strategy and analysis.
Most traders that are in the market for a broker are concerned primarily with trading platforms, commission and the quality of information provided such as newsletters. However, if you are in the market for a full service broker, you need to take your research one step further. Not only do you need to find a firm that is capable of meeting your logistic needs, but it is crucial that you choose an individual broker in which you can properly communicate, are comfortable with their experience and most of all trust to help you on your journey to being a successful trader.
Deciding on a brokerage firm is a significant decision and shouldn’t be taken lightly. Before committing to a firm it is imperative that you research their services, experience, trading platforms and commission structure but more importantly whether your trading style and personality will be compatible. For example, a beginning trader shouldn’t look to a deep discount online brokerage firm simply because they likely won’t get the guidance that they will need as a novice. Similarly, a seasoned trader wouldn’t want to choose a firm that focuses on high-end service with a hefty price tag.
There is a substantial risk of loss in trading futures and options.
Past performance is not indicative of future results. The information and data contained on DeCarleyTrading.com was obtained from sources considered reliable. Their accuracy or completeness is not guaranteed. Information provided on this website is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. Any decision to purchase or sell as a result of the opinions expressed on DeCarleyTrading.com will be the full responsibility of the person authorizing such transaction.