Why Trade Commodity Options?
Just as there are several ways to skin a cat, there are an unlimited number of ways to trade in the options and futures markets. The method that you choose should be based on your personality, risk capital and risk aversion. Plainly, if you don’t have an aggressive personality and a high tolerance for pain, you probably shouldn’t be employing a trading strategy that involves elevated risks. Doing so will often results in panic liquidation of trades at inopportune times as well as other unsound emotional decisions. Commodity options provide a flexible and effective way to trade in the futures markets. Options offer investors the ability to capitalize on leverage while still giving them the ability to manage risk. For example, through the combination of long and short calls and puts an investor can design a strategy that fits their needs and expectations; such an arrangement is referred to as an option spread. Keep in mind that the possibilities are endless and will ultimately be determi
