Selling commodity futures options jevep239047431
The purchase of a put option gives the buyer the right, but not the obligation, to sell a futures contract at a designated strike price before the contract expires.
In commodity markets, buying put options is often a low-risk way to take a short.
DeCarley Trading strives to offer the highest quality futures , options brokerage services at competitive rates.
In finance, a futures contractmore colloquially, between parties not known to each other., futures) is a standardized forward contract, a legal agreement to buy , sell something at a predetermined price at a specified time in the future
Selling commodity futures options. A commodity futures contract is an agreement to buy , sell a predetermined amount of a commodity at a specific price on a specific date in the future. Buyers use such contracts to avoid the risks
In the latest edition of Carley Garner's beginners' book on commodities, she details everything you need to know about futures and options trading before placing a trade. Active risk management is a must if you intend to sell options on futures contracts.
How do you manage the extra risks involved in selling options on commodity futures.