Free Online Trading Lessons Archives

Trade futures contracts like you would stocks, with income and limited risk

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Creative use of long and short commodity options traded against a long or short futures contract can create a position that mimics the primary advantage of stock trading; limited risk and income generation.

 

Join us to discuss the peril of trading futures contracts outright and a strategy to modify the practice of futures trading to resemble something more comfortable and familiar; stock trading. Experienced futures broker, Carley Garner, will outline an effective method of reducing the stress and risk of participating in the futures markets.  Specifically, this class will focus on constructing covered call strategies in the commodity markets with the benefit of a catastrophic insurance policy in the form of a long put option. The result is a position that generates income to cushion downside risk and enable the trader to benefit from a sideways market while also providing attractive profit potential and a sharp hedge against tail risk. 

 

Some highlights include:

  1. Trading Stocks vs. Trading Futures
  2. The advantages and disadvantages of stock trading relative to futures trading
  3.  What are futures contracts?
  4. How to trade a diversified basket of commodity futures
  5. The Bloomberg Commodity Index futures contract
  6. How to modify futures to behave like stocks with limited risk and income
  7. Managing emotion, risk, and margin trading long and short options around a primary futures position
  8. Managing tail risk exposure while trading futures contracts

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