Option Strategies for Futures Traders: #2 Straddle
We have covered the option tree strategy in the previous post. In the spirit of the campaign season, we had the readers decide which strategy we...
Read MoreOption Strategies for Futures Traders: #1 Option Tree
There are various exotic option strategies with different objectives and theoretical scenarios. I’m going to walk you through the basics in detail,...
Read MoreChicago Wheat, KC Wheat, Hard Red Wheat | Wheat's the Difference?
When talking about Wheat futures, it is important to understand that there are three distinct contracts. Not only are the three contracts based on...
Read MoreFutures Spread Techniques: Butterfly Futures Spread
Savvy traders, who understand the term structures of futures markets, often use the butterfly futures spread to isolate certain contracts in which...
Read MoreBeef Industry Futures: Feeder and Live Cattle
The U.S is the largest producer of grain fed beef in the world due to its abundance of pasture suitable for grazing and its large supply of feed...
Read MoreBasic Mechanics of Agricultural Options
There are two types of options: calls and puts. A call option is a financial instrument that increases in value if the underlying commodity increases...
Read MoreDeep Out-Of-The-Money Options: A Calculated Risk
The trading strategy of purchasing a deep out-of-the-money call or put option has been referenced as purchasing a “lottery ticket”. Both present an...
Read MoreKnow Your Trading Lingo: A List of Terms to Help You Speak Our Language
As you start following the futures markets, you will find that brokers, traders, and individuals in the futures/commodities industry have certain...
Read MoreDoes Back Testing Work?
Many times, there are traders that want to back test their strategy and trading ideas before going live. They spend days and weeks pouring over data...
Read MoreCredit Spreads: A Way to Collect Premium with a Defined Risk
Many traders are familiar with collecting premiums by selling options, and it has proved to be a profitable strategy. However, the unlimited risk...
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