One of the questions that frequently comes up with option traders who have only done the equity side of options is how do I get into trading futures options and what do I need to know before I start? There are several basic things you should know and understand about futures and their option before you get started with live trading of them. What month should I trade? One of the first characteristics to consider is that futures do not always have a new contract every month. Many futures, U. S. Treasury bonds for instance, have only a few contract months per year. Treasuries have March, June, September and December only. All the months in between have options only that are traded derivative of the next futures month. Strategies, such as time spreads must be placed carefully to insure that you are trading off the same underlying contract month. Get to know your futures and options expiration periods before you start. Not only the contract months differ from the equity world, trading hours do also so be sure to know when your underlying is being traded during the day and night. What is the tick size? Tick size for the […]
About Mark Fenton
As Senior Mentor, Mark mentors individuals on a one-on-one basis, teaches group classes and develops trading plans. He has been trading stocks, futures, commodities and options for over 18 years as a retail trader. Mark also formerly held series 7 and series 66 licenses. Mark is especially strong at developing traders that know how to stick to a plan and control the emotions and impulses that can hinder trading.
Entries by Mark Fenton
558 Revere Ave.
Westmont, IL 60559
The information contained on this website is for educational purposes only: no representation is being made that the use of any trading strategy or trading methodology will generate guaranteed profits. Past performance is not necessarily indicative of future results. There is substantial risk of loss associated with trading options. Only risk capital should be used to trade. Trading options is not suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Please review the document- http://somurl.com/KnowYourRisk before trading options.