Commodities Options

corn

As your expertise in option selling grows, you will no doubt become aware of commodities and commodities options. Just like stock and index options, commodities such as corn, gold, and oil can be bought and sold. This is done in the Futures market. And just like many stocks have options associated with them, many futures contracts also have associated commodities options.

This presents us with another option-selling arena. In fact, some argue that these options can be even more intriguing than stock and ETF options to the option seller because the amount of money required on margin can be much less than for stock options.

Please do not dive into this endeavor without arming yourself with sufficient knowledge. My best recommendation for jump-starting your education about selling commodities options can be found in the pages of The Complete Guide to Options Trading by James Cordier and Michael Gross. These authors have put together an educational masterpiece on the subject and you will learn a lot by reading it. In addition, check out the site Trading Commodities Profitably.com for more detailed educational material about this interesting trading arena.

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SBI!