So, here’s an interesting question. What happens when you take a derivative of a derivative? It sounds like either something out of The Big Short or Inception.
Options on Futures
So, here’s an interesting question. What happens when you take a derivative of a derivative? It sounds like either something out of The Big Short or Inception.
Oftentimes traders and investors get stuck where they have a position in the stock, or want to initiate one, but aren’t sure when the move will occur.
Anytime your forecast on an asset is for a near-term pull back, a short call spread is an easy way to make a quick profit.
If you’ve been trading options only on stocks, it’s time to branch out a little and learn how to make money in the futures market.
While option trading is most commonly associated with stocks, commodity futures also have a robust derivative market.