Commodity Option Trading

Most traders over complicate commodity option trading.... There is so much misinformation as well as information that leads the novice to believe that option trading is complicated. You *do not* need to know dozens of complicated strategies to make option trading profitably.

So, if you are new to commodity option trading or have been around awhile and are overwhelmed by all the talk about delta's gamma's beta's etc. Oh....yes and if you think commodity option trading is about knowing stratles strangles, butterflies and double whammies....(in two words) forget it.

I've been trading stock options for over 25 years and commodity option trading for 16 years....And I'm here to tell you that....

There are two ways to profit trading commodity options.

• You can buy low cost options!
• You can Sell high priced options!

A totally different strategy is applied in each situation .Each strategy is unique and far removed from the other. Lets tackle buying options first....

When buying commodity options....you expect the underlying commodity is going to make a move. Up for calls and down for puts. When buying options I prefer to look for opportunities where you can buy low cost calls. If you do this in situations where the underlying commodity is in strong demand, and at the same time in low supply, you can expect a large up move to follow.. With that scenario....you can expect to make some very nice profits very quickly. The following is the system that I use to accomplish that..... commodity option trading ......it is straight forward, easy to follow and captures the big move profits.

Are the professionals trying to keep the average trader from selling commodity options? One of the least understood things about commodity option trading is selling. When selling naked, or uncovered, puts and calls you are taking on more risk than when you are on the buying side. The terminology alone....naked and uncovered....was created by the professionals ....to keep the less experienced away from their lucrative game....think about it, no one wants to be naked and uncovered. They created physiological barriers to keep the rewarding business of selling of options to themselves.

But consider this.... 90% of all options expirer worthless. That fact alone means the option seller is a winner 90% of the time. Plus....every time you sell an option that expirers worthless you make 100% on your money. That is why many smart traders concentrate on selling options.

Lets do a little math and see how that works out. The commodity options that a trader sells usually expire in 2 to 3 months. Each time he makes 100% on his money..... that comes to over 400% a year.

I hear objections already....your asking....what about the 10% of the time your are wrong. Aren't you exposing yourself to unlimited risk? Yes you would be..... if... you didn't limit your risk. You do that by exiting that option and putting on another option. You need a plan to do that and if you like....you can use my plan. Click here to see my plan.

Not only can you limit your risk when commodity option trading ..... you can increase the odds of being right to over 98%. What if I could show you how to be almost 100% certain that the commodity option you were selling would allow you to make profits....profits of 60 to 100% each time. With one click of your mouse you will know, not guess....but know when it is time to sell options. Works for selling both puts and calls. learn more.

A word about commodity option trading and risk.....have you every gained anything without some degree of risk. The fact is....there is risk in everything you do. Every time you hop in your car you take a risk of getting hurt or injured.. You know that.....but you also know that by following the rules of the road and driving defensively you will most likely avoid those calamities.

Commodity Option Trading is no different.... The key.....profitable commodity option trading is to limit your risk to situations that stack the odds in your favor..... while allowing that small risk to turn into big-league profits. Check out a commodity option trading system that does just that commodity option trading

Learn more about selling Call Options

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Commodity option trading is risky. Futures, Options, Stocks and Commodity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in Stocks, Futures, Options and Commodity markets. Don't trade with money that you can't afford to lose. This is neither a solicitation for commodity option trading nor an offer to Buy/Sell Futures, Options, Stocks or Commodities. risk disclosure