ARTICLE SYNOPSIS ...Here's an overview of using options as a technique to take advantage of unique situations in the futures markets. By David L. Caplan How can you take advantage of the same principles of success that the most profitable corporations in the world, the casinos and insurance companies, use to improve your odds in trading? Why are insurance companies and casinos so profitable? Insurance companies are consistently profitable because they use the laws of mathematics, probability and special circumstances to their advantage. They can pick and choose who they want to insure and the prices they want t...
ARTICLE SYNOPSIS ...Options In Trading Ranges by David L. Caplan Options have a natural appeal due to the limited risk aspect for the options buyer, but there is a tradeoff: Because of the time decay factor, options lose value. However, as David Caplan, publisher of the Opportunities in Options newsletter, points out, you can take advantage of the time value decay characteristics. Here's how. Option purchases and futures trades are only successful if the market moves in the direction predicted (without the trader being stopped out first, naturally). In addition, option buyers have to worry about time value dec...
ARTICLE SYNOPSIS ...How to be wrong and still profit by David L. Caplan Why bother learning and using professional option strategies? Why spend the time and energy to learn how and when to use options and option strategies when, in trading futures, all you have to do is use your technical, fundamental or system analysis, pick the direction of the market, follow the trend, buy low, sell high and reap the profits? In comparison to those two or three decisions that have to be made in trading futures, option strategists have almost 40 billion decisions to make! Should options be bought or sold? Should puts or calls...
ARTICLE SYNOPSIS ...Overlooked Trading Opportunities by David L. Caplan Option strategies are, unquestionably, one of the most under-used and overlooked opportunities available to the trader. Properly used, option strategies can provide the trader with significant new trading opportunities and advantages. However, option strategies are currently used only by a small minority of traders. There are several reasons for this. First, option trading is relatively new--options on stocks have been exchange traded for twelve years and options on commodity futures and cash indicies for less than three. Secondly, most trad...