Modifying a Covered Call Strategy for Commodity Trading
A covered call strategy is often considered a relatively conservative approach to stock market investing because it offers traders additional portfolio income and a hedge against downturns. However, traders hoping to simply apply the same approach to the commodity markets might be surprised. Due to logistic and mechanical differences between the stock and commodity markets, it is imperative that the traditional covered call strategy is modified for use in the commodity markets. Join us to discuss the necessary modifications to a covered call strategy to make it appropriate for commodity traders, how to calculate profit, loss, and risk, and tips and tricks to proper strategy development.
*Many topics discussed in this video are featured in Carley Garner's new book on commodity trading, "Higher Probability Commodity Trading."
- What is a covered call strategy?
- Why is trading covered calls in commodities different than stocks?
- Two primary modifications to a covered call approach making it appropriate for commodity trading
- Understanding the risk and reward potential of covered calls in commodities