Free Online Trading Lessons Archives

Hedging Futures with Short Options webinar

Free Trading Video: Modifying a Covered Call Option Strategy for use in Commodity Trading

Higher Probability Commodity Trading by Carley Garner

The strategy of writing covered calls against a stock portfolio is a popular investment strategy assumed to provide long-term investors with additional income and a dash of conservatism. However, those who attempt to recreate the strategy in the futures and options markets are often dished a rude awakening. Due to natural leverage built into the commodity markets, the typical covered call strategies must be modified. Join us on August 2nd to discuss the practice of selling call and put options against antagonistic futures positions as a means of premium collection.

*Many of the topics discussed in this video are featured in Carley Garner's newest book, Higher Probability Commodity Trading!

 

 


Here are some of the major talking points:

•What is a covered call and put strategy?

•Why is trading covered calls and puts different in commodities than stocks?

•Calculating profit, loss, and risk.

•Determining the ratio of short options to futures contracts

•Are covered calls and puts a better way to sell options?

•Shopping for optimal opportunities to implement a short options trade against a futures position

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