Wednesday, May 22nd, 2019

El Niño and Wheat Options

In the Americas we associate the El Niño weather system with excessive rain. However, when El Niño floods the Americas it typically causes drought in South Asia. Thus India has signed the biggest wheat import deals in a decade according to the India Times.
Flour millers in India and the local units [...]

Trading Coffee Options

The second most highly traded commodity in the world next to crude oil is coffee. Trading coffee options can be profitable but requires a unique skill set. Investopedia writes about the perks of trading coffee options.
“Soft commodities,” which include cotton, cocoa, coffee, and sugar, are appearing in portfolios as [...]

Trading Commodity Futures Options

In times of uncertainty trading commodity futures options is often a better bet than trading futures directly. The precipitous fall in crude oil prices is a case in point. It is clear that eventually the global economic picture will improve but no one knows just how soon. If you are stuck [...]

Options on Gold

The United States economy is in recovery and the price of gold is sinking. The US Federal Reserve plans to cut back on stimulus spending which is driving up interest rates and driving down the price of gold. In this climate options on gold are probably a better choice than directly buying [...]

What Is Commodity Options Trading?

Buying and selling futures on oil, gold, or wheat can be very profitable. It can also be risky. Many commodity traders buy options to hedge risk. But what is commodity options trading? Traders buy and sell futures on commodities such as oil, gold, and agricultural products. If they wish to buy [...]