Option Strategies

While futures are powerful tools in their own right, options on futures allow the trader the potential to profit in virtually any market environment. With options, traders can construct strategies that profit in advancing, declining or even stable markets, while at the same time reducing risk and increasing leverage.

In addition, because options also can be used to protect against adverse price moves in livestock, interest rate, foreign exchange and equity markets, they have become an increasingly popular hedging vehicle. Today corporate treasurers, bankers, farmers and equity portfolio managers throughout the world benefit from using options as risk management tools

Some traders prefer to sell options rather than buy options. Learn about our Option Selling Program

Whether you are a trader or a hedger, one of the single most important advantages of options is that the option buyer has the potential to realize large profits while limiting risk to the amount paid up front for the option plus commission and fees. However, before you incorporate options into your trading and risk management decisions, you should thoroughly investigate the risks, nomenclature and strategic uses of these instruments.

The more background you have in options, the more likely you will be able to take full advantage of these powerful financial instruments. Our LEARN FAST trading courses are a good way to learn how to construct and apply option strategies.

The information above and additional information on options is published by the Chicago Mercantile Exchange. You can access this booklet free by clicking on the link below...
CME Options on Futures Brochure

Contact one of our option experts today!