Buying Options on Futures Contracts
Although futures contracts have been traded
on U.S. exchanges since 1865, options on
futures contracts were not introduced until
1982. Today, options on futures contracts offer a wide
and diverse range of potentially attractive investment
opportunities.
This booklet is designed to provide you with
a basic understanding of options on futures
contracts - what they are, how they work
and the opportunities and risks involved in
trading them.
Author: National Futures Association
Options on Futures
With options on futures, traders can construct strategies that
profit in advancing, declining or even stable markets,
while at the same time reducing risk and increasing
leverage. 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.
Author: Chicago Mercantile Exchange
Futures & Options Strategy Guide
With the many futures and options strategies available to the trader, it is
sometimes hard to keep track of them all.This 49-page Strategy Guide
illustrates 21 trading strategies in an easy-to-analyse, graphical format.
It starts with basic, simple strategies and progresses to more sophisticated
option-related strategies like butterfly spreads, ratio spreads and box/conversions.
It cross-references each strategy with market sentiment, whether bullish, bearish, or neutral and with
volatility, whether rising or falling. For each trade, it details the break-even point, risk and potential gain
at expiration as well as "things to watch" along the way. This Guide is a great reference for any trader.
Author: Chicago Mercantile Exchange