Options on Futures, Workbook: Step-by-Step Exercises and Tests to Help You Master Options on Futures

Increased marketplace volatility and the expanding size of capital markets have led to an explosion of interest in options on futures. What makes these instruments so attractive is that they allow traders to profit from movements in the markets using little up-front capital and plenty of leverage. At the same time, they provide an excellent hedge against the risks associated with capital market investments. This book demystifies these notoriously difficult-to-understand instruments and provides state-of-the-art strategies and tools for making the most of options on futures.
John F. Summa (New Haven, CT) is a CTA and cofounder of OptionsNerd.com, an online service providing market commentary, trading advisories, and assistance with trading system development. Jonathan Lubow (Randolph, NJ) is cofounder and Vice President of Trader's Edge, a futures and options brokerage.Dieses Arbeitsbuch folgt der thematischen Einteilung des Haupttitel "Options on Futures". Zunachst werden die Kernkonzepte der einzelnen Kapitel zusammengefasst. Der Stoff wird anschlie?end mit einer Reihe von Fragen mit Ja-/Nein- oder Multiple-Choice-Antworten abgepruft und durch zusatzliche Ubungsaufgaben auf der Basis simulierter Borsengeschafte und Marktkonditionen weiter vertieft. Mit einem Antwortschlussel am Ende jedes Kapitels und umfangreichen Erlauterungen zu den einzelnen Fragen und Aufgabenstellungen. Unter anderem werden folgende Themenschwerpunkte abgedeckt: S&P 500 Futures, Funktionsweise von S&P Futures-Optionen, Kaufs- und Verkaufsoption bei einem S&P Credit-Spread, grundlegende Eigenschaften von Warenterminkontrakten und Optionen auf Warenterminkontrakte, Verkauf ungedeckter Optionen, Ratio-Spreads und Optionsverkaufe, Timing des S&P 500 mit Hilfe der Put-Call-Ratio Analyse. Dieses Arbeitsbuch vermittelt Ihnen ein Gefuhl fur Futures-Optionen und zeigt Ihnen, wie Sie an den Optionsmarkten erfolgreich agieren: Systematisch, verstandlich, praxisnah und mit einer Fulle nutzlicher Tipps und Ratschlage. Introduction 1

Questions

Trading Options the "Write" Way 5

Why Trade Options on Futures? 14

SandP 500 Futures Basics 20

The Option Pricing Story 26

Understanding SandP 500 Options 32

The Long and the Short of an SandP Credit Spread 39

Simulating Margin Requirements for an SandP Credit Spread 47

Parameters of Profitability of SandP Credit Spreads 55

Commodity Futures and Options Characteristics 63

Selling Strategies for Commodity Options 70

Putting Theory into Practice 77

Synthetic Call Strategies for Commodities 82

Using Put-Call Ratio Analysis to Find Timely Entries 87

Answers

Trading Options the "Write" Way 97

Why Trade Options on Futures? 103

SandP 500 Futures Basics 107

The Option Pricing Story 113

Understanding SandP 500 Options 120

The Long and the Short of an SandP Credit Spread 126

Simulating Margin Requirements for an SandP Credit Spread 138

Parameters of Profitability of SandP Credit Spreads 144

Commodity Futures and Options Characteristics 150

Selling Strategies for Commodity Options 156

Putting Theory into Practice 163

Synthetic Call Strategies for Commodities 168

Using Put-Call Ratio Analysis to Find Timely Entries 173

JOHN F. SUMMA is registered as a commodity trading advisor (CTA) with the National Futures Association, and is cofounder of OptionsNerd.com, a Web site devoted to providing market commentary, trading advisories, and educational support to options traders. He has published numerous articles on options trading in a variety of publications, including Technical Analysis of Stocks & Commodities magazine. Mr. Summa, a former professional skier, holds a master's degree in economics from the New School for Social Research and currently operates Summa Capital Partners, LP, a commodity pool hedge fund based in Connecticut.
JONATHAN W. LUBOW is cofounder and Vice President of Trader's Edge (www.atradersedge.com), a futures and options brokerage based in Madison, New Jersey. He has worked on the floor of the Chicago Board Options Exchange (CBOE) and has had uninterrupted registration with the National Futures Association since 1990. Prior to forming Trader's Edge, he was the top performing broker at Carr Investments for five straight years. Lubow holds a degree in history from Dartmouth College. Master Options on Futures Trading By Testing Your Knowledge on Key Concepts and Strategies

John Summa and Jonathan Lubow provide an invaluable opportunity to explore your understanding of Options on Futures: New Trading Strategies in their companion Options on Futures Workbook.

The workbook chapters correspond directly to the chapters in Options on Futures: New Trading Strategies. The authors begin by summarizing the key concepts of each chapter in Options on Futures, including a brief glossary of terms. They then present a series of review questions-true/false and multiple choice-followed by supplemental exercises containing simulated trades and market conditions. Answer keys are listed in the back of the book, with helpful, extended explanations.

Topics covered include:
* Understanding S&P 500 futures
* Mechanics of S&P futures options
* The long and short of an S&P credit spread
* Essential characteristics of commodity futures and options
* Synthetic calls, naked writing, and ratio spreads and writes
* Timing the S&P 500 using put/call ratio analysis

Get a solid feel for the options on futures markets with the Options on Futures Workbook. Also included are detailed explanations of what it means to be an options writer, how to determine if options are overvalued, and when is the best time to sell options with the highest probability of success.