Though trading in futures and options involves a substantial risk of loss and is not suitable for all investors, these markets still attract a big amount of members in trading floor. For its popularity and importance, today, I would like to review with you some simple options trading strategies.
Talking about learning how to trade options, you may want to stick to long option trading strategies since, as the buyer, the risk will be the premium money you pay up front to own the option. Once you are in the trading floor, you surely have your own trading strategy. Based on your particular trading strategy, you can buy a call on a futures market that you think is moving or may move higher. Or, in contrast, you may buy a put on a market you think is moving or will move lower. From learning about options, you can look at a market and know that you will probably have to pay more for an option that is at or in-the-money. Out-of-the-money 선물옵션 options trading strategies will be priced based on how likely it is that they will be in-the-money at or before expiration of the option contract.
Now just have a look at some cases and view solutions. If the futures market moves in the direction of your option’s strike price or moves through it, you can exercise your right on that contract and offset the resulting position with a futures market transaction and possibly collect a profit. If the market does not reach or trade through your option’s price, it will expire worthless and you have, in effect, forfeited the premium. Also, you can sell an option prior to expiration for more or less premium than you paid. Exiting, writing or selling options can also be an important part of the planning of your options trading strategies.
As a trader in floor, we all wish to be successful. Again, I want to remind that option spreading techniques are worth learning how to identify and trade. Bull spreads and bear spreads are well known options trading strategies. The idea behind these strategies is that the sale of a further from the money option will offset some of the initial cost of your option. It will put a ceiling on your profit potential but it does take some money off the table when you are trying for a particular directional move in the futures market.
To exist and to have a luxurious life, people tend to join in trading, but no market is easy to trade and futures options also. When put your legs to the floor, you know that learning should be non-stop job. The markets are always changeable and competitive, the way you go is still long and so you still need to gain knowledge and help from friends. Learn, learn more, learn forever!