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Options and Futures Articles

Here we'll provide you with insight on how options work, how they are useful and why you might consider adding them to your portfolio.

Take Flight With An Iron Condor

This options strategy allows your profits to soar in a sideways market.

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An Alternative Covered Call: Adding A Leg

Try this approach to covered calls to increase your potential for profit in any market.

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Trading Around Key Options Indicators

Learn the key economic indicators to help predict market movement.

If you want to take advantage of the versatility of options, you'll need to adopt these smart investing habits.

Look at trades that are profitable when the value of corresponding puts and calls diverge.

This bullish trading strategy offers unlimited potential profit with limited risk.

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Determining Market Direction With VIX

The CBOE's volatility index is a helpful market indicator. Learn how it can gauge the mood of the stock market.

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9 Misconceptions About Managed Futures

Managed futures are not all they're worked up to be. Learn why they are not a good option for investors.

Move beyond simply buying calls and puts, and learn how to turn time-value decay into potential profits.

In this strategy, traders cash in when the underlying security rises - and when it falls.

Learn to keep your losses to a minimum and consistently produce positive results.

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Introduction To Counterparty Risk

Unlike a funded loan, the exposure from a credit derivative is complicated. Find out everything you need to know about counterparty risk.

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Using Options Instead Of Equity

Learn how to multiply returns and diversify risk by buying options instead of stock.

Index LEAPS can be a highly effective way to hedge a retirement portfolio consisting of index or mutual funds, without the effort of short-term options trading.

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The Basics Of Covered Calls

Learn how this simple options contract can work for you, even when your stock isn't.

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An Introduction To Real Estate Futures

These futures are intended for institutional use, but retail investors looking to speculate on prices can benefit as well.

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Take A Tour Of The Futures Trading Pit

Discover why controlled chaos can mean an exciting investment experience for you.

This different approach to the covered-call write offers less risk and greater potential profit.

If you are a hedger or a speculator, gold and silver futures contracts offer a world of profit-making opportunities.

Use this simple three-step process to make your own earnings predictions using options data.

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Uncovering Oil And Gas Futures

Find out how to stay on top of data reports that could cause volatility in these markets.

These plans can be lucrative for employees - if they know how to avoid unnecessary taxes.

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An Introduction To Structured Products

Learn a simple way to bring the benefits of derivatives into your portfolio.

We'll show you how to use the average monthly trading range to score better returns.

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Fueling Futures In The Energy Market

The energy market influences every aspect of our lives, and these four options are its driving force.

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Adding Alpha Without Adding Risk

Learn how to generate higher returns in your portfolio while keeping the same risk profile.

Volume should inform your use of this indicator in confirming trends and reversals.

Applied primarily to the futures market, this indicator confirms trends and reversals.

Learn about the price-volatility dynamic and its dual effect on option positions.

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An Introduction To Managed Futures

Their inverse correlation with stocks and bonds make these alternative investments worth getting to know.

Learn how to read the volume reports, look at the relation to liquidity and interpret volume using open interest.

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How To Manage Bull Put Option Spreads

Learn how to halt options losses when the market moves quickly in an unfavorable direction.

This trading strategy will show you how to gain from a decline in implied volatility on any movement of the underlying.

Learn more about the position delta hedge ratio and how it can tell you the number of contracts needed to hedge a position in the underlying asset.

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An Introduction To Weekly Options

The weeklys are a powerful tool that can create quick profits or quick losses, depending on how you use them.

Learn how this overlooked area of trading can help improve your gains.

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Out-Of-The-Money Put Time Spreads

Learn about this low-risk, bearish options strategy used to speculate on major market declines.

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The Advantages Of SPAN Margin

Find out how it provides futures and commodity option strategists with more bang for their margin buck!

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Learn To Corral The Meat Markets

Find out how to trade these hog-wild commodities.

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The Benefits And Value Of Stock Options

The pros and cons of corporate stock options have been debated since the incentive was created. Learn more about stock option basics and the cost of stock options.

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Surveying Single Stock Futures

These contracts allow for easier shorting, and provide more leverage and flexibility than stocks.

Writing bull put credit spreads are not only limited in risk, but can profit from a wider range of market directions.

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Vertical Bull and Bear Credit Spreads

This trading strategy is an excellent limited-risk strategy that can be used with equity as well as commodity and futures options.

Learn how put options can act as insurance for volatile stocks in your portfolio.

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Trading The Soft Commodity Markets

Learn the contract specifications for a few of the most heavily traded commodities.

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Introduction To Weather Derivatives

Learn about a financial instrument that makes temperature a tradable commodity.

As long as the underlying stocks are of companies you are happy to own, put selling can be a lucrative strategy.

Check out some repair strategies to help boost the profit potential of a losing position.

Even beginners may use this strategy to trade a bullish outlook.

With a single diagram, you can see how price, time and volatility affect potential gains.

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Should Your Options Go Naked?

Compare naked strategies to credit spreads and see if the unlimited risk of going naked is worth it.

Learn how these two statistics can give you an edge in trading options.

Derivatives can reduce the risks associated with changes in foreign exchange rates, interest rates and commodity prices.

Selling a greater number of options than you buy profits from a decline back to average levels of implied volatility.

While they may be "a girl's best friend", diamonds haven't made it to the futures market - yet.

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Derivatives 101

Learn how to use this type of investment as an alternative way to participate in the market.

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ETF Options Vs. Index Options

Choosing either ETF options or index options can make the difference between big profits or a big bust.

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Option Strategies For A Down Market

All investors should be aware that the best time to buy stocks is when the market is tanking, according to history.

There are many key advantages offered to options traders who deal only in the underlying securities.

Learn how analyzing these variables are crucial to knowing when to exercise early.

These risk-exposure measurements help traders detect how sensitive a specific trade is to price, volatility and time decay.

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Warrants: A High-Return Investment Tool

Discover the advantages of this largely unexploited investment vehicle.

Options are not only trading instruments but also predictive tools that can help us gauge the feelings of traders.

It's been 10 years in the making, but you can now bet on which movies will hit it big, or which will flop.

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5 Equity Derivatives And How They Work

These derivatives allow investors to transfer risk, but there are many choices and factors that investors must weigh before buying in.

Alert options traders can follow this strategy to improve their chances of success.

Even if the risk curves for a calendar spread look enticing, a trader needs to assess implied volatility for the options on the underlying security.

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The History Of Options Contracts

Options and futures didn't originate with Wall Street power brokers. In fact, it all started with rice.

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Are You Ready To Trade Futures?

If you want to trade futures in the hopes that you'll become rich, you'll have to answer some questions first.

The futures market is a lot less scary when these indicators are used to establish current trends.

As the overseer of the commodities and futures industry, the NFA helps to protect investors from fraudulent futures activities.

These unique instruments take options trading to a whole new level.

There is a wealth of information in the expanded option symbols, but they should make things easier for traders.

A thorough understanding of risk is essential in options trading. So is knowing the factors that affect option price.

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How Does Your Margin Grow?

Risk-management tool SPAN margin boosts profitability prospects by helping to determine when to exit a trade.

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Getting Acquainted With Options Trading

Interested in learning more about stock options? We go over some basic terminology and the source of profits.

Betting on an expected move is fine, but one must understand the risks involved in a position - and consider the alternatives.

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Going Long On Calls

Learn how to buy calls and then sell or exercise them to earn a profit.

The standard covered call can be used to hedge positions or generate income. This calendar spread may do so more effectively.

This strategy provides traders with the flexibility to craft a position with unique risk/reward characteristics.

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Hedging With Puts And Calls

This trading strategy can reduce your risk - but only if you use it effectively.

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Options Trading: The Modidor Spread

Use this modification of an iron condor to reduce risk and increase your chance at profiting on the trade.

Futures trading is risky business, so it's crucial that traders' positions match the level of risk they are willing to bear.

There's one simple hurdle in the transition from stock to futures options: learning about product specifications.

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Do Option Sellers Have a Trading Edge?

Take a look at a study that discovered that three out of every four options expired worthless.

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Find Profits By Hedging Iron Condors

Hedging iron condors with put calendars can help control losses, and can even make an investor more profitable.

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The Truth About Naked Short Selling

The media demonizes naked short selling, but in most cases it occurs in a collapse, rather than causing it.

Options are always speculative, but LEAPS provide a longer time frame, which may make them more profitable.

This rule allows traders to substantially reduce their risk, and possibly benefit on their tax returns as well.

Using the Volatility Index can be essential for investing success.

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Trade Smarter With Equivalent Positions

Understanding the concept of equivalent positions will help you trade more efficiently and save money on trade fees.

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The Ins And Outs Of Selling Options

Selling options can seem intimidating but with these tips, you can enter the market with confidence.

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Backdating: Insight Into A Scandal

Any time money is involved, a scandal is sure to follow. Find out how a university study blew the cover off this one.

There are ways to control risks, reduce losses and increase the likelihood of success in your portfolio. Find out how spreads can help.

With early exercise, you forfeit some profit back to your employer, and incur income tax to boot.

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4 Reasons To Hold Onto An Option

There are times when an investor shouldn't exercise an option. Find out when to hold and when to fold.

Collars are extremely flexible, and can be much more beneficial to your portfolio than asset allocation.

In 2009, Senators Carl Levin and John McCain introduced a bill to stop the excessive deductions for ESOs. But is there another solution?

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Peekaboo! Call Writing Gets Naked

Learn about this aggressive trading strategy that can be used to generate income as part of a diversified portfolio.

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Introduction To Put Writing

Learn about a strategy that may be appropriate if you have a positive outlook on a stock.

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The Basics Of Buying Options

Options can be an excellent addition to a portfolio. Find out how to get started.

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Using LEAPS In A Covered Call Write

Discover how strategy can help reduce your downside risk.

This options trade is essentially free and can have huge profit potential, but it's not without its risks.

The zero-cost cylinder allows traders to effectively trade the market while protecting their downside.

Covered calls may require more attention than bonds or mutual funds, but the payoffs can be worth the trouble.

Find out how the largest speculative attempt to corner the market went awry.

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Iron Condors: Wing It To Maximum Profit

Understanding the right way to execute an iron condor can increase potential returns and limit risk.

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Tips For Getting Into Futures Trading

The futures markets can seem daunting, but these explanations and strategies will help you trade like a pro.

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The Basics Of The Long Ratio Backspread

This option trading strategy allows for unlimited profit potential in a given direction while still providing security.

An underused opportunity provided in an SEC rule can enhance returns and lower risk for spread traders.

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Minimize Risk With The Long Collar

Think your favorite stock is on the way down? This simple option-trading strategy can help you manage your risks without selling the stock.

The OTM butterfly spread offers traders three unique advantages, and can lead to consistent profits. Find out how.

The reverse calendar spreads offers a low-risk trading setup that has profit potential in both directions.

Learn the top three risks and how they can affect you on either side of an options trade.

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Understanding Option Pricing

Take advantage of stock movements by getting to know these derivatives.

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Reducing Risk With Options

If you want to use leverage to your advantage, you must know how many contracts to buy.

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Getting To Know The "Greeks"

Understanding price influences on options positions requires learning delta, theta, vega and gamma.

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An Overview Of Commodities Trading

Foresight and careful observation are the keys to trading this market.

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The 4 Advantage of Options

Flexible and cost efficient, options are more popular than ever. Find out why.

With options, the direction of a stock's next major move becomes less important than its magnitude.

These option strategies allow traders to play on earnings announcements without taking a side.

If you're bearish, you should compare the risk/reward characteristics of these two strategies.

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The Midas Touch For Gold Investors

Find some golden opportunities by investing in gold commodities or futures contracts.

This strategy allows you to stop chasing losses when you're feeling bearish.

Find out how to get a better price for your option and increase your trading profits.

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Prices Plunging? Buy A Put!

You can make money on a falling stock. Find out how going long on a put can lead to profits.

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The ABCs Of Option Volatility

The mystery of options pricing can often be explained by a look at implied volatility (IV).

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Stock Option Expiration Cycles

Understanding expiration cycles is just one more way to help you increase your success rate when trading options.

Exercising early can benefit options traders, but only when trading American-style options.

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Putting Collars To Work

Find out which protective or bullish collar will result in your optimal risk/return level.

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How To Invest In Commodities

Find out which futures, options, or funds will be your perfect commodity portfolio fit.

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Exploring European Options

The ability to exercise only on the expiration date is what sets these options apart.

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Greenshoe Options: An IPO's Best Friend

Find out how companies can save or boost their public offering price with these options.

These two options have many similar characteristics, but it's the differences that are important.

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Selecting A Hot SPOT Option

These options allow investors to have full control over their investments.

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Investing Seasonally In The Corn Market

Each month can bring new growth opportunities, if you know where the right investment seeds are.

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Managing Interest Rate Risk

Learn which tools you need to manage the risk that comes with changing rates.

Find out how to come out on top, even when the market is dropping.

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What Is Option Moneyness?

Get the basics under your cap before you get into the game.

Believe it or not, there are some great income-generating strategies that are lower in risk.

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Should You Flock To Iron Condors?

This market neutral strategy isn't for everyone. Read on to find out if it is for you.

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Iron Condors Fly On Fragile Wings

Do the rewards outweigh the risks for this trading strategy? Read on to find out.

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Sugar: A Sweet Deal For Investors

From sugar beet to sugar cane, this sector is growing despite a lot of sour challenges.

Futures investors flock to spreads because they hold true to fundamental market factors.

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Harvesting Crop Production Reports

Find out what grain investors need to know to analyze USDA reports.

This options spread strategy provides many advantages over plain old puts and calls.

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A Guide To Real Estate Derivatives

These instruments provide exposure to the real estate market without having to buy and sell property.

Forget straddles. These strangles are both liberating and legal in the investing world.

Being both short and long has advantages. Find out how to straddle a position to your advantage.

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Credit Default Swaps: An Introduction

This derivative can help manage portfolio risk, but it isn't a simple vehicle.

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Naked Options Expose You To Risk

Find out why these enticing options can spell trouble for your bottom line.

If you can't trade commodity futures outright, these vehicles provide a less expensive alternative.

They've contributed to some major market scandals, but these instruments aren't all bad.

Participate in options trading trading that is simpler, less expensive and easier to manage.

These contracts provide access to commodities without a huge capital commitment.

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Forget The Stop, You've Got Options

Using options instead of stop-loss orders adds finesse and control in limiting losses.

This value is an essential ingredient in the option pricing recipe.

Profit from up, down and sideways markets with commodity trading advisors.

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Using LEAPS With Collars

This options strategy will help you lock in profit while keeping your upside potential.

These unusual investment vehicles can reignite your interest in trading.

Find out how these instruments work and how they are used in the market.

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Hedging Basics: What Is A Hedge?

This strategy is widely misunderstood, but it's not as complicated as you might think.

Learn why hedge funds collapse and how to avoid making the same mistakes.

Discover how to find and use the most cost-effective ways to transfer risk.

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Leveraged Investment Showdown

Margin loans, futures and ETF options can all mean better returns, but which should you pick?

Gain access to premier, highly liquid ETFs with lower capital requirements.

This powerful tool can have you swimming in money or drowning in underwater equity.

These vehicles have gotten a bad rap in the press. Find out whether they deserve it.

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Cut Down Option Risk With Covered Calls

A good place to start with options is writing these contracts against shares you already own.

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Don't Forget Your Protective Collar

Guard your finances in uncertain times with this options strategy.

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Rolling LEAP Options

Learn how to buy and hold with leverage.

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An Introduction To Swaps

Learn how these derivatives work and how companies can benefit from them.

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Gamma-Delta Neutral Option Spreads

Find the middle ground between conservative and high-risk options strategies.

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Contango Vs. Normal Backwardation

Learn about the futures curve and what its shape means for hedgers and speculators.

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Grow Your Finances In The Grain Markets

Hedging with futures can protect those who buy and sell commodities from adverse price movements.

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Price Volatility Vs. Leverage

We'll show you how to effectively gauge the risk of the markets you trade.

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Introducing The VIX Options

Discover a new financial instrument that provides great opportunities for both hedging and speculation.

Learn more about the trading possibilities with the VIX.

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