Trading futures contracts outright can be a risky proposition. Not only is it difficult to predict the direction of prices, but it is even more challenging to time entry and exit from the market.
Join us for this live webinar to introduce the concept of using options to hedge the exposure of holding long or short futures contracts. Although stop order placement is a popular risk management technique, some traders believe such an approach may act as a limitation obstacle. After all, stop orders are only executed if the market moves adversely to the position. In addition, they tend to be elected on sharp, but temporary, moves resulting in unnecessary trade liquidation at unfortunate prices. Perhaps a more viable strategy is the practice of selling options against (in the opposite direction) long or short futures. Doing so works toward a reduction of position volatility, shifts risk further away from the market, provides lasting power during adverse market moves, and can potentially increase the potential of a trade.
This class will cover the following topics:
• Covered calls in stocks vs. futures
• Constructing a bullish or bearish futures strategy hedged by short options
• Using technical and seasonal analysis to increase the odds of success of a covered call or put strategy
• Determining the quantity of short options for each futures contract
• Understanding position delta, and determining a neutral or directional bias
• Being aware of the risk of a runaway market and/or excessive volatility
About the Presenter
Carley Garner is an experienced futures and options broker with www.DeCarleyTrading.com, a division of Zaner, in Las Vegas, Nevada. She is also the author of "Currency Trading in the FOREX and Futures Markets", "A Trader's First Book on Commodities" and “Commodity Options” published by FT Press, a division of Prentice Hall. 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.
Carley is a Magna Cum Laude graduate of the University of Nevada Las Vegas, from which she earned dual bachelor’s degrees in both 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.
Throughout her fast paced career, Carley has been featured in the likes of Stocks & Commodities, Futures, Active Trader, Option Trader, Your Trading Edge, Equities, Expiring Monthly and Pitnews Magazine. Carley is often interviewed by news services such as Reuters and Dow Jones Newswire, and has been quoted by the Investor’s Business Daily and the Wall Street Journal. She has also been known to participate in Radio interviews and can be found on the speaking circuit.