Free Online Trading Lessons Archives

Commodity Option Selling: Quality over Quantity

Futures option sellers must choose between low probability yet high-risk event exposure, or high probability yet lower-risk exposure

 

 

 

When it comes to selling options on futures, there are several trading strategies that accomplish the goal of premium collection; However, not all market approaches come with the same risks, even if the reward is similar.  For instance, a trader wishing to collect $1,000 in premium could sell a single option relatively close-to-the-money (the strike price of the option is near the current futures price), or he could sell ten deep-out-of-the-money options for $100 each.  The reward is the same, but the risk is far different in regard frequency and magnitude.  Join experienced futures and options broker, Carley Garner, to discuss the characteristics of each approach to option selling.

Commodity Options ThetaMajor talking points of this free commodity trading video are:

Higher Probability Commodity Trading by Carley Garner

  • Can commodity option sellers sell their way out of anything?
  • Option delta and probabilities, does it matter as much as we think it does?
  • The truth about risk and reward when choosing an option strike price to sell
  • The potential peril of selling options in high quantities
  • The difficulty of selling close-to-the-money options on futures
  • The Decision (not unlike Lebron Jame's July 2010 decision)

 

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Carley Garner Trading Books

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  • A Trader's First Book On Commodities
  • Carley Garner
  • Carley Garner Books
  • Commodity Trading Book
  • Futures Trading Book
  • Learn To Trade
  • Learn To Trade Commodities
  • Learn To Trade Futures
  • Higher Probability Commodity Trading, new Carley Garner book

    Higher Probability Commodity Trading, new Carley Garner book

    According to Phil Flynn, Fox Business News contributor, this is Carley Garner's "masterpiece"! Order from Amazon today! "A great read for both beginner and advanced commodity traders. Carley nails the seemingly impossible task of leveling the playing field by imparting vital concepts in easy to digest bites ...she doesn't leave out the harsh realities and heartbreak many overzealous speculators face." -- JON NAJARIAN, co-founder NajarianFamilyOffice.com "I love the book... it's an MBA in trading for the
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  • Third Edition of A Trader's First Book on Commodities, now available

    Third Edition of A Trader's First Book on Commodities, now available

    In the latest edition of Carley Garner's beginners' book on commodities, she details everything you need to know about futures and options trading before placing a trade.  BUY NOW In their quest for trading commodities profitably, beginning traders spend a substantial amount of time studying market theory, various types of market analysis, and paper-trading in the futures and options markets.  Yet, almost all of them fail to take the necessary steps to ensure their trading
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    • A Trader's First Book On Commodities
    • Carley Garner
    • Carley Garner Books
    • Commodity Trading Book
    • Futures Trading Book
    • Learn To Trade
    • Learn To Trade Commodities
    • Learn To Trade Futures
  • Commodity Options the Book

    Commodity Options the Book

    It isn't free, but it's close! If this book saves you 2 ticks, you've recouped your investment.   Commodities are hot, as Jim Rogers would say.  Stagnant stocks and the massive bull rally in raw commodities have lured much of the attention away from Wall Street and toward down-town Chicago.  It is difficult to turn on the television or open the newspaper without being reminded of the impact that commodity prices have on our daily lives.   Traders
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  • Currency Trading in the FOREX and Futures Markets

    Currency Trading in the FOREX and Futures Markets

    Get a copy of Carley Garner's latest book at Amazon.com, or any major outlet! "Once again, Carley Garner demonstrates her ability to boil down complex concepts for individual traders. Trading Currencies in the FOREX and Futures Market will put budding currency traders ahead of the curve with its unique blend of the basics and some refreshingly unexpected material." ~ Karris Golden, Traders Press® "Carley is a smart trader and broker; she understands the markets and the importance of
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