My Daily Blog is at: investorandtrader.blogspot.com So, I had that series regarding Futures, and Commodity Futures. What about options on Futures? I’ve been discussing that. Ok. We’ve gone through the Futures, and had a whole series on Commodity Futures. We discussed why options are valuable. We discussed what is meant by the term “Put” option, and “Call” option. We discussed the five components of pricing with the Black – Scholes model. We discussed the first two components of an options value, in the delta and the gamma. Now, let’s turn to the aspect of time, or ‘theta’.NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other trader. who should make their own decisions based off their own research.
You are here : Online Trading » video trading » Investing and Trading: Futures Options – Theta or Time Decay
Online Trading
Advertising
Forex Trading
Futures Trading
Trading Videos
-
Related Posts From This Category
Crude Oil Investing and Futures Trading Speculation
Tuesday, 07 Feb 2012An introduction video about opportunities in Crude Oil speculation. Learn more about Crude Reality Daytrade ...
E-Trade – Best Man Super Bowl Commercial 2012
Tuesday, 07 Feb 2012funnysuperbowlcommercials.com Best part about the Super Bowl is obviously the Super Bowl Commercials and here ...
Gerald Celente: MF Global Looted Customers’ Accounts Via Internal Bank Run 3/4
Monday, 06 Feb 2012Big players got warning ahead of time that financial broker was set to collapse Paul ...
The Best Way to Trade Futures for Beginners
Monday, 06 Feb 2012Day Trading does not have to be difficult or confusing as JP from daytradetowin reviews ...
February 2, 2012 Midday Metals Report
Sunday, 05 Feb 2012Commodities, Ira Epstein, Linn Group, Futures Trading, Online Trading, Technical Analysis, Metals Report, Sales: 866-973-2077
@82snowball It could, as long as volatility remains the same with the crops (no fire tornadoes as we’ve seen recently) – as commodities options are excercised more often than stock options
At 3.47 wouldn’t it be more astute to sell a Put @ 13 that way you benefit if the stock rises and time decay is in your favour.
You are more than welcome mate.
I plan to!
thank you very much, please keep up the educational stuff
For beginners: take an option calculator and play with the greeks in order to understand how the price is influenced by these factors.