Categorized | Futures Trading

Investing and Trading: Futures Options – Theta or Time Decay

My Daily Blog is at: http://investorandtrader.blogspot.com/

So, I had that series regarding Futures, and Commodity Futures. What about options on Futures? I’ve been discussing that.

Ok. We’ve gone through the Futures, and had a whole series on Commodity Futures. We discussed why options are valuable. We discussed what is meant by the term “Put” option, and “Call” option. We discussed the five components of pricing with the Black – Scholes model. We discussed the first two components of an options value, in the delta and the gamma. Now, let’s turn to the aspect of time, or ‘theta’.

NOTE: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and Investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research.

Duration : 0:6:23


Technorati Tags: , , , , , , , , , , , , , ,

3 Responses to “Investing and Trading: Futures Options – Theta or Time Decay”

  1. AirelonTrading says:

    You are more than …
    You are more than welcome mate. :) I plan to!

  2. tonikmajor says:

    thank you very much …
    thank you very much, please keep up the educational stuff

  3. utubje says:

    For beginners: take …
    For beginners: take an option calculator and play with the greeks in order to understand how the price is influenced by these factors.

Trackbacks/Pingbacks


Leave a Reply