Make Money on the Fed Interest Rate Increase

It seems certain that the Federal Reserve will raise interest rates in December 2015. How can you make money on the Fed interest rate increase as an options trader? The Chicago Board Options Exchange lets you trade options on volatility on interest rates.
Interest rate derivatives represent the largest asset class [...]

Difference between Options and Futures

In options trading one can trade options on futures contracts as well as on equities themselves. Having a clear sense of the difference between options and futures is essential in this regard. To understand the difference between options and futures let us start with a couple of basic definitions.
Futures Contracts
Futures [...]

Profit from Interest Rate Options

Options traders take interest rates into consideration when trading options on stocks, commodities, and foreign exchange. However, it is possible to profit from interest rate options directly as well. Interest rate options are traded on the Chicago Board Options Exchange, CBOE. Options traders can purchase both puts and calls on the [...]

Options Trading CBOE

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After 37 years as a private member owned organization the Chicago Board Options Exchange (CBOE) is filing an initial public offering for up to $300 million. CBOE was the world’s first marketplace for options. Founded in 1973 CBOE’s daily trading volume has reached to over a [...]