Video Training Library – Topics:
Comparing Stock Options and Commodity Options: The Basics for Selling Commodity Options:
- Why commodity options have higher Return on Income – SPAN margin system for commodities.
- See real example: compare stock option to commodity option trade.
- Get Away from Stock Market Volatility
- How this Strategy Uses the Same Math as Casinos and Insurance Companies: Trading Smarter
- How to Sell a Commodity CALL option for Income:
This real example illustrates selling a CALL on Crude Oil futures contracts.
- This video explains the mechanics of selling a commodity option.
- An example using the option matrix in ThinkOrSwim to show strike selection & explain OI and pricing.
Managing a Trade: When Do I Take Profits?
- This is one of the questions I get most often. How do I know when to take a profit during a trade? I’ve used a real trade and by explaining the initiation of the trade and then looking into time as the trade is 58 days old, I show you the “how and why” I decided to exit this trade and take the profits.
- This video also explains why it is, I rarely hold an option until its expiration date. These are all decisions a trader must make, so this example can help.
How You can Use the “Prob OTM” to help shop various strikes for option-selling?
- This is a very short video, only 2:36 min/seconds. It’s a part of one of my TRADE COMMENTARIES where I briefly discuss the selection of options in Crude Oil and Corn.
- It show how to use the “Prob OTM” parameter and compare it to the possible returns of short option trades. It also show how to avoid strikes with low Open Interests to avoid getting stuck in a trade:
A Brief Introduction to Selling Commodity Options (about 5:00 minutes):
- How to set up a trade. An illustration of how to use research to choose a trade, then how to go to the option matrix in your trading software to refine strike selection.
- How to find how much margin is required for a trade using your broker’s software.
- Also how to computer ROI (Return On Investment) of a trade.
A Favorite and Reliable Seasonal Trade Using Corn Options and Seasonal Commodity Prices:
- This is a trade I do almost every year that rides seasonal trends in North American’s Corn Market. It uses a 15-year average Price Pattern Chart from my book to help setup a trade.
- It explains how seasonal patterns are useful in finding good trades:
Example: Selling a CALL on Commodity Soybean Contract:
This video sets up selling a naked CALL option on the NOV19 Soybean Futures. You will see how selling very far OTM (Out-of-the-Money) strike CALLs can create income. Also see a chart with some explanation of how we use Fundamental Analysis in our research on a trade. Strong seasonal price patterns often offer trading opportunities in the commodities markets. Length: 4:11
Selling Short Strangles: Opportunities with this strategy and a real trade example of using it:
This video illustrates an actual trade placing a Gold short strangle, selling both CALLs and PUTs at the same time in order to collect income and the option values dissipate. This is only 3 minutes long and gets right to the point with a simple explanation of this strategy.
The commentary and examples are for teaching purposes only and are not intended to be a trading or trade advisory service. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein on the web site and/or newsletter, are committed at your own risk, financial or otherwise. Trading with leverage could lead to greater loss than your initial deposit. Trade at your own risk. Investors and traders are responsible for their own investment/trading decisions including entries, exits, position, sizing and use of stops or lack thereof. This is not a trade advisory service and is for educational purposes only. The content on the pages here is believed to be reliable - but we cannot guarantee it.