Advanced Option Strategies

Option Trading – Thinking Outside The BoxIntermediate to Advanced Futures OptionStrategiesTABLE OF CONTENTSBack to Basics 4Introduction 10Delta Neutral Trading 15Theta Trading 16Directional Option Trading 32Ratio Backspreads 37Final Word 38Excerpt from book introduction:IntroductionThere are many futures options techniques that can be profitable. They canrange from buying and selling options based on volatility to trading ratiobackspreads based on the technical analysis of the underlying futuresmarket.One way is to trade spreads that can profit from time decay. You can selloptions which you believe will lose more time value than the options youbuy.The key is to find techniques that have an advantage when you put the tradeon. What I will discuss are futures options trades that have this advantage.Trades that have a special quality that you can spot before you enter into it.You will be able to see what options are “cheaper” or more “expensive”compared to anothe (more…)