Futures, Options and Forex Educational Center for the Beginning Trader

Buying Call and Put Commodity Options

Buying options has the advantage of limited downside risk: the most that you can lose in a worse case scenario is the price paid for the option (known as the option premium) plus commission and other transaction fees. This makes option buying appealing both to those who have limited trading capital and/or want to limit trading risk. The upside, or most to gain, with an option purchase is theoretically without limit.

In this 36-minute video, you'll learn directly from a commodity trader who has experience in trading options. Topics covered include:

  • Buying a call option in anticipation of a price rally (Cocoa example).
  • Buying a put option in anticipation of a fall in the price (Cdn dlr example).
  • How to read option prices - straight from the Internet.
  • How to pick the strike price and determine the break-even point.
  • Deciding the maturity of the option.
  • Practical points when buying options.

As a special bonus, the presenter will share an actual option-buying trade in sugar from his own trader's log.

This video is presented by Rick Thachuk, President of World Link Futures, Inc. and is being made free of charge thanks to the sponsorship of The Futures Training Division of PFGBEST. To access this free online video, please complete the information below.

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© 2008. World Link Futures, Inc. All rights reserved.
Futures, options and forex trading involves substantial risk and is not for everyone. Only risk capital should be used.


 

 

 

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