Trading Commodity Options...with Creativity: When, why, and how to develop strategies to improve the odds in any market environment and risk-reward profile

by Carley Garner

Overview

Trading Commodity Options...with Creativity takes readers on an unfamiliar voyage destined to simplify the options on futures markets and arm market participants with the knowledge to employ smarter commodity market strategies.

Many books have been written on options trading, but most focus on the academic side of options suggesting there are black and white answers and reliable mathematical formulas to determine profit and loss. Yet, options traders must be ready and willing to deal in gray areas, approximations, and guesswork. Trading Commodity Options...with Creativity bridges the gap between traditional options trading literature and real-life trading examples. Through tough-learned lessons, this book tackles the nearly impossible task of streamlining the process of developing an appropriate options strategy for any market environment and risk tolerance, then making the necessary mid-trade adjustments to improve the odds of success.

Product Details

ISBN-13:	9781948018906
Publisher:	Decarley Trading, LLC
Publication date:	07/24/2020
Pages:	376
Product dimensions:	8.50(w) x 11.00(h) x 0.78(d)

About the Author

Senior Commodity Market Strategist and Broker, STOCKS & COMMODITIES Magazine Columnist, TheStreet.com Contributor, and Author Carley Garner is an experienced futures and options broker with DeCarley Trading, a division of Zaner Financial Services, in Las Vegas, Nevada. Her commodity market analysis is often referenced on Jim Cramer's Mad Money on CNBC and she is a regular guest on Bloomberg Television's Options Insight segment with Abigail Doolittle. Garner is a regular contributor to TheStreet.com and its Real Money Pro service and is also a regular on the speaking circuit and can be found at TradersEXPOs and MoneyShows throughout the country. Garner is also an award-winning commodity futures and options trading book author. In addition to Trading Commodity Options with Creativity, Garner has authored Higher Probability Commodity Trading; A Trader's First Book on Commodities (three editions); Currency Trading in the Forex and Futures Markets; and Commodity Options. Her e-newsletters, The DeCarley Perspective and The Financial Futures Report, have garnered a loyal following; she is also proactive in providing free trading education at www.DeCarleyTrading.com. Carley is a magna cum laude graduate of the University of Nevada Las Vegas, from which she earned dual bachelor's degrees in finance and accounting. Carley jumped into the options and futures industry with both feet in early 2004 and has become one of the most recognized names in the business. Carley authors a monthly column in Stocks & Commodities magazine and has been featured by several major media outlets. Visit Carley at www.DeCarleyTrading.com.

Table of Contents

Section 1: Introduction to Options on Futures 15

Introduction: An Unconventional but Logical Approach to Option Trading 15

Chapter 1: A Crash Course in Option Mechanics 22

Chapter 2: An Option Is an Option...Think Again 59

Section 2: Trading Outright Call and Put Options 75

Chapter 3: Buying Options Outright Isn't Always a Great "Option" 75

Chapter 4: Option Selling Strategies Come with Favorable Odds but Limited Profit Potential 96

Section 3: Option Spreads 144

Chapter 5: Lower Risk Option Buying-Vertical Debit Spreads 144

Chapter 6: Limited Risk Option Selling-Vertical Credit Spreads 158

Chapter 7: Selling Options with Insurance: Horizontal and Diagonal Spreads 172

Chapter 8: Cost-Free Trading with Creative Option Spreads 187

Chapter 9: Ratio Spreads 197

Chapter 10: Option Ladders 213

Chapter 11: Limited Risk Range Trades 220

Chapter 12: Risk Reversals and Synthetic Futures 240

Section 4: Hedging Options with Futures and Vice Versa 248

Chapter 13: Synthetic Long Option Plays 248

Chapter 14: Covered Calls and Puts 260

Chapter 15: Trading Futures Like You Would Stocks 267

Section 6: Applying What We Have Learned 274

Chapter 16: Higher Probability Commodity Trading 274

Chapter 17: Understanding Option Margin 288

Chapter 18: Weekly and Short-Dated Options-What Are They and How Can They Be Used? 302

Chapter 19: Option Trading Platforms and Entering Orders 312

Chapter 20: Commodity Trading Myths 332

Chapter 21: The Apocalypse; Early 2020 347

Index 360

Editorial Reviews

"If you are looking to get rich quick, keep looking. Carley Garner's latest effort outlines the brutal consequences that come with lackadaisical risk management in commodity trading. Trading Commodity Options with Creativity opens readers' minds to imaginative and unconventional option strategies intended to reduce the hazards of speculation as well as help businesses improve the efficiency of their hedging activities. If you are willing to think outside of the box and put in the legwork, this book is essential for those searching for a smarter way to participate in the futures markets."

- James Cramer, Host of Mad Money, CNBC

"The ideas in this book can often at times be intimidating and confusing - Carley strips away those barriers and gets right down to the brass tacks. Not only does Carley cover commodity options but she leaves no stone unturned in her efforts to give the reader a deep, well-rounded point of view. Take your time, reread a few of the chapters. This book is to be absorbed, not just read. If you walk away with a good understanding of what is presented in this book, you will be ahead of your peers and on very solid footing in the commodity options industry. Carley has given the reader a great bargain with the knowledge she has imparted in this book, all the while raising the bar for any future commodity options trading authors."

- Scott (The Cow Guy) Shellady

"Carley Garner is one of the premier voices on trading options and commodity futures. She is as authentic as she is knowledgeable. Trading Commodity Options...with Creativity is the perfect combination of her expertise and personality and it as engaging as it is helpful. This book is a fantastic real-world guide on how to how trade commodity options with finesse."

-Abigail Doolittle, Options Insight Host, Bloomberg Television

"One of Carley's greatest skills is the ability to make complex topics easy to understand. Trading commodity options with...Creativity is another example of her skill. Carley's ability is to demystify the sometimes-intimidating world of options trading is amazing and valuable to every level of trader. Veteran traders view options as part math and part religion. Once you are indoctrinated into this world you won't trade without them."

-Jim Iuorio, TJM Institutional Services and CNBC Contributor

"Carley breaks down commodity options trading with a precision that only a seasoned pro can do. The well-thought-out format showing the pros and cons of different strategies provides a consistent template essential for learning. The biggest bonus is the unexpected wealth of information on everything from seasonals to expirations. The subtleties take the book well beyond a pure textbook. Nice job!"

-Linda Raschke, Professional Trader

From the Publisher