Dirty rotten phone calls: The anatomy of a scam

GB’s note: This is a great story from ABC that boils down to that old saying: if it sounds too good to be true, it is. It’s true that sometimes trading can be easy but what precedes that is a stack of groundwork that includes lots of reading, research and structured screen time. Having a long […]

The Basic Fundamentals, Strategy and Vocabulary of our Options Markets

This introductory guide will walk you through the basic fundamentals, strategy and vocabulary of our options markets, providing a solid base of knowledge that will make you well-prepared to tackle these opportunities. The Basic Fundamentals, Strategy and Vocabulary of our Options Markets from CME Group

Meet the Greeks – Part 2

In this article, we move a little further down the track and look at how changes in other factors can affect an option. For any option trader, it is interesting information, but more importantly essential in understanding the risk in a position.

Meet the Greeks – Part 1

(Originally published in Active Trader magazine) What a boring game all this would be if option prices showed no fluctuations! The price, or premium, of an option is constantly changing for whatever reason. As an options trader you must be prepared, armed with the knowledge of how an option price can react in certain scenarios. […]

The Best Options Strategy

Not long after options became available, there were the seminars and the books and the systems that come with any new financial product. There were all sorts of people touting what they see as the best strategy for making money. This article puts all that in perspective. Is there such a thing as ‘the best strategy’?

Hedging with Index Options

The concept of hedging has always been a controversial one. This article looks at hedging options with the DAX.

Your Very Own Order Book

This is a sheet for writing out orders. Its design is very similar to that used by many brokers for recording phone orders from customers. It’s a handy little tool that is simply a good way to keep a record of when, and with whom, you placed an order and of all the trade details. […]

Gold – tough market, but there is always an angle

$900 seems like a key level for Gold. This chart from March 2009  shows several points of resistance and support. Generally speaking the more a level is tested either as support or resistance, the more significant a breakaway becomes. Does this forecast near term direction? Not quite. But it does imply a breakaway within the next […]

FAQ: Futures, Options & Tropic Thunder II

Q: Aren’t options spreads cheaper to trade than futures spreads? A: This question is based on a misunderstanding of the mechanics of futures and options trading. Options: With options, including options on futures, you pay a “premium” when you buy an option and receive the “premium” when you sell an option. If you pay 10 […]

Coffee Futures Outlook and Trading Strategies

With a more bullish fundamental setup for next year and a movement by fund traders and investors to own commodities and shy away from owning the US dollar, the coffee market appears poised to attract significant new buying interest in the months ahead.