COMMODITY OPTIONS TRADING COURSE!

What is an Option?

An option (as  it pertains to the commodity futures market) is a contract that gives you the right, but not the obligation, to either go long (described  below) or go short (described below) in the underlying futures contract at a pre-determined entry price on or before a specific date. Each of the two types of contracts offers the opportunity to take advantage of price  moves in the futures markets without actually having a futures  position.

There are two types of options, call options and put options.  Call and put options are separate option contracts.

Call Option 
The call option gives the buyer the right, but not the obligation, to go long the underlying commodity futures contract at a pre-specified
entry price on or before an expiration date. You would normally buy a  call option when you believe the futures price will increase.

Put Option 
A put option  gives the buyer the right, but not the obligation, to go short the underlying commodity futures contract at a pre-specified
entry price on or before a specific date. A put option is used when you believe the futures price will decrease.

Why Trade Options?

The main advantage of buying options is that you have a predetermined amount of risk, which is the cost of the option.
When you buy an option, you pay the cost of  the option to the option seller. This cost is your total risk.

Options have several characteristics that make them more attractive to some traders. They include:

• Limited Risk. An option buyer of either a simple Call option or Put option cannot lose more than the amount paid for the option, 
  plus commissions.

• Staying Power.  Using options means that you don't run the risk of getting stopped out of a trade, especially when market volatility
  increases.

• Profit Is Not Limited. If you're correct in your analysis about the direction of price movement in the underlying futures contract,
  the profit potential can be enormous.

• Quick Fills. You can quickly enter and exit markets at a reasonable price.

• No Margin Calls. Buyers of options pay the full amount for the option when they purchase it. This means the buyer will not encounter
  a margin call on an option position regardless of adverse price movement. In contrast, when you control a futures contract, you may
  be required to deposit more money if price moves adversely resulting in a margin call.

• No Limit Moves. Options are immune from the risk of limit moves that can sometimes occur in the futures markets.

• Numerous Strike Price Selection. Because options are generally available in a range of strike prices, it provides you with
  financial flexibility in your trading activities.

• Lower Capital Requirements. Typically, the cost of buying an option will be less than the margin required to control a futures contract.
  This can provide you with huge financial leverage - when you correctly assess  where the market price is likely to go.

• Provide Trading Alternatives. Options can be used as a substitute for protective stop  (i.e., stop-loss) orders to prevent market 
  fluctuations from stopping you out of what may ultimately become a profitable position. In addition, an option trader can speculate on factors
  other than market price direction - such as volatility and time  decay -  as the basis for generating profit.

• Learn How To Trade Risk-Free. You can paper trade to learn the skills you need to be successful without risking a penny.

Over 90% of new people who trade options will lose money. The  other 10% are successful for the following reasons:

• They learned about how the options markets work,

• They learned how to anticipate and identify changes in an option's price and position themselves to benefit from that price change,

• They have defined and use both a Trading  Plan and Money Management Plan.

By doing these things, you gain a significant advantage over other option traders. And this complete Commodity  OPTIONS Trading Home Study Course^TM will teach you how to do these things. It is an educational presentation that shows you how to define a simple and practicalTrading  Plan. You use this trading plan to intelligently evaluate and select commodity markets that have the highest likelihood of  becoming a successful trade.
This course will teach you trading  techniques that minimize your chances of loss while simultaneously enhance your ability to profit from "expected"  market price movement.

What Does This Trading Course Contain ??