Commodity Options


  • Pages: 280
  • Format: PDF
  • Published Date: 2009


Commodity Options: Trading and Hedging Volatility in the World¿s Most Lucrative Market

In this book, two of the field’s most respected analysts present strategies built from the ground up for commodity options.

Many books have been written about options on futures, unfortunately we believe that many of them are either contradictory or just a meandering compilation of exchange-generated research and material. In our opinion, much of the available literature leaves you even more confused than you were before you opened the book. With this book we hope that we have taken a step toward changing what has been the norm in this genre.

The descriptions of the trading methods used in this book were meant to be easily understood and, even more important, easy to employ. The strategies outlined throughout this book can be effective and efficient option plays; accordingly we and our clients use many of them on a daily basis.

In fact, we are so comfortable that our approach to the markets is viable in the long run that we choose to publish our trades on the Internet and distribute them by e-mail before we execute them in the marketplace. We like to call this “The Good, the Bad, and the Ugly” because we show it to you without filters. We stand by a simple statement “Seeing is Believing”!!


  • Option Basics: A Crash Course in Option Mechanics
  • An Option Is an Option Is an Option…Think Again
  • Long Option Strategies
  • Short Option Strategies
  • Credit Spreads
  • Limited Risk Option Spreads
  • Synthetic Swing Trading
  • The Other Ratio Spreads
  • Limited Risk Range Trades
  • Synthetic Long Option Plays
  • An Option Trade from Top to Bottom
  • The Wizard of Oddz: Applying Option Strategies in the “Real World”
  • Margins and Option Trading
  • Commodity Trading Myths