Sunday, December 16th, 2018

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 [...]

Oil Options Trading

Crude oil prices have fallen into the sixty dollar a barrel range taking oil stocks on a downward ride. Oil options trading is active as many traders think it is time to bet on a turnaround. Likewise Reuters reported massive options action in the Energy Select Sector SPDR after OPEC announced [...]

Make Money with Oil Futures Options

Last week we wrote about how you can make money trading options. This week we look at a specific niche that can be very profitable, options on oil futures. First let us look at the difference between futures and options. Then we look at how to combine the two to make [...]

Stock Option Trading in 2014

In order to prepare for stock option trading in 2014 let us consider the events that are likely to occur and how they will affect markets. The long awaited reduction in the Fed quantitative easing stimulus program has begun. As a result interest rates are going up. To the extent that [...]

The Leverage of Trading Options

The leverage of trading options is perhaps its greatest attraction. With the simple investment of a premium a trader can nail down a price at which he or she will be able to buy or sell an equity, no matter high or low the price may go. The leverage of buying  and [...]

Technical Analysis of Options

Technical analysis of options tells the trader what the options market will do next. Analysis of stock and market sector fundamentals will give the trader and investor an accurate picture of the long term prospects of the underlying equity. Investors and traders will often buy the underlying equity based upon [...]

Options Trading Volatility

The talk these days in options trading seems to be all about volatility. Options trading volatility is nothing new. The prime reference for options trading volatility is the VIX. According to the CBOE web site, “The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed [...]

Picking Options

Picking options is like picking stocks in the stock market but more involved. In the stock market you can buy a stock or short a stock. In occasional options trading or if you are making a living trading options there is more to do in picking options. The first choice in picking options is to [...]

Options Trading Volume

Options trading volume varies with the belief that prices of underlying equities will fluctuate. For example, institutions that are writing puts in options trading may not believe that a stock or commodity price will fall but those buying puts do. It is not the change in price of the underlying that drives interest and increases [...]

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