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1). Futures Option Spreads – Delta Neutral Trading By : David Rivera
There are many ways to trade futures option spreads. One way is to trade spreads that can profit from time decay. You can sell options which you believe will lose more time value than the options you buy.
Another way is to buy and sell options based on their deltas. Some of these trades are called delta neutral trades. Delta neutral trades are option trades in which the total delta of all the options is Zero.
Article Related to: futures options, commodity options, futures trading
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2). Option Trading – Thinking “Outside The Box” By : David Rivera
Wouldn't it be great if we could buy an option with five months left until expiration and sell an option with 2 months left until expiration for the same price? You couldn't lose. Well we can't. I love options spreads so much I realized something very important.
We can buy a spread that has a lot of time value left at almost the same price as we can sell one with less time value left.
Article Related to: futures options, commodity options
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