Option trading on stocks and commodities


Instead of a "skew" we now have a "smile. This is because option traders are willing to pay up for "tail-risk" protection, and most hedgers in equities are fearful of downside. Either way, commodity options trading is definitly coming support and resistance for binary options trading into my trading arsenal for the next few months.

Either way, commodity options trading is definitly coming back into my trading arsenal for the next few months. This heightened risk produces higher potential reward-- and for those that want to get more conservative, trading indexes or index futures can mitigate option trading on stocks and commodities risk. I've put together an Iron Condor Trading Toolkit that gives you the case studies and training needed to be consistently profitable in the market. I see two possibilities heading into the summer months.

If the second comes along, then summer volatility and liquidity in equities will dwindle. This changes the strategy set used in commodity options trading-- iron condors become more attractive, as do ratio sales after extreme moves. Spacely Sprocket company needs to hedge their Euro risk. They look to buy stock in companies. What's going on right now

Instead of a "skew" we now have a "smile. What's going on right now This can be crucial when finding the best trades. If the second comes along, then summer volatility and liquidity in equities will dwindle.

Joe farmer needs to sell his soybeans. But in commodities like gold, oil, soybeans, and currencies the perception of risk is bi-directional. I'm a huge fan of trading commodity options.

If we get the first scenario, then correlations will ratchet up among stocks and it will be a macro game again. This can be crucial when finding the best trades. I've put together an Iron Condor Trading Toolkit that gives you the case studies and training needed to be consistently profitable in the market. Spacely Sprocket company needs to hedge their Euro risk.

These 3 differences are the most important concepts to understand, as they can potentially change the way you trade these instruments. If we get the first scenario, then correlations will ratchet up among stocks and it will be a macro game again. They look to buy stock in companies. This can be crucial when finding the best trades.