Archive for Commodities Research’ Category

The FUDOM Method of Selling Options
Aug

21

2017

The FUDOM Method of Selling Options

How to sell options with the highest odds of Expiring Worthless What is FUDOM? Opposite of what Most Option Books Teach Example: FUDOM vs. “Book Knowledge” Option Selling JULY 2014 COFFEE   Dr. John sells a July Coffee 2.15 call and 1.80 put – it’s how he was “taught” to sell options. The Problem JULY 2014 COFFEE   Coffee rallies then falls. Both of Dr….

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“Freeze Season” in Coffee is Opportunity for Call Sellers in 2017
Aug

15

2017

“Freeze Season” in Coffee is Opportunity for Call Sellers in 2017

With the 2017 Brazilian Harvest Wrapping up and a potentially record crop next year, a supply burden should keep prices in check into next year If you’re a mainstream investor used to gauging P/E ratios or milling through bond yields, selling options on coffee futures may sound like launching a trip to the moon. “Soft” commodities are also sometimes referred to as “exotics” – most…

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Summer Weather Rally Pumps Up Call Premiums in Corn, Soybeans
Jul

14

2017

Summer Weather Rally Pumps Up Call Premiums in Corn, Soybeans

Despite Dry Weather in the Northern Plains, Fundamentals Remain Bearish In both our corn and soybean articles from May and June, we highlighted a burdensome supply picture. However, you might have noticed that for both markets, we suggested summer weather rallies might offer opportunities for selling inflated call premium. If you’ve been waiting for one of those, you now have it. Over the past 2…

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Despite Weather Talk, Selling Calls Should Still be Solid Yield Builder in Supply Laden Corn
Jul

14

2017

Despite Weather Talk, Selling Calls Should Still be Solid Yield Builder in Supply Laden Corn

The Usual Weather Hoopla is Will Likely be Putting some Premium back into Call Options – a near perfect recipe for fundamentally focused option writers (Note to Readers: Since the original publication of this piece (in the July Option Seller Newsletter) Corn prices have climbed over 10% on a weather rally, and subsequently fallen back again. As the December calls in the article are no…

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Media Helps Call Sellers in Supply Laden Crude
Jun

7

2017

Media Helps Call Sellers in Supply Laden Crude

News Coverage and a Bump from Seasonal Demand are Again Making Call Sales in Crude a Cash Flow Opportunity “Oil Prices Rise as US Tanks Drain.” That was the headline of the lead commodity article in the May 18th edition of The Wall Street Journal. This is the tone the recent coverage crude oil is receiving from investment media as frenzied reporters gape over talk…

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Call Sales are Still a Cash Cow in Supply Burdened Soybeans
May

16

2017

Call Sales are Still a Cash Cow in Supply Burdened Soybeans

Despite a recent dive in prices, the fundamentals should keep bean prices struggling for some time Buy low and sell high. It’s the cornerstone philosophy of investing that has been pounded into us since we looked at our first price chart. New converts to commodities, however, learn that selling high and buying back lower can be just as easy – and just as (if not…

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How to Make Money from Grain Fundamentals
May

8

2017

How to Make Money from Grain Fundamentals

Knowing what is really moving grain prices can give you a leg up as an Option Seller As planting season kicks into high gear in the US during the month of May, traders of soybeans, corn, wheat and cotton will be keeping a keen eye on fundamentals. During planting season, the supply side fundamentals for the whole year can develop in a matter of weeks….

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Springtime Income Opportunities in Natural Gas
May

3

2017

Springtime Income Opportunities in Natural Gas

Seasonal Supply Build Sets up High Probability Plays for Call Sellers In our February Trade Advisory, we outlined a case for higher natural gas prices into the spring. This primarily based on the seasonal tendency for natural gas prices to rise as supplies worked towards a low at the end of winter. Indeed, supplies did continue to decline through the spring – following typical seasonal…

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May

2

2017

How to Get Real Diversification in your Portfolio: The 6 Alternative Investments You MUST Know About

Click To Read Video Transcript (Video Transcript) Hi. This is Michael Gross, co-author of “McGraw-Hill’s The Complete Guide to Option Selling” and also director of research here at OptionSellers.com. I'm here with your bi-monthly video lesson. The topic of this month's lesson is “Real Diversification” and we're going to go off the grid a little bit here this week and talk about something that's on...

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Cotton Rally Plumps Premiums for Call Sellers
Mar

17

2017

Cotton Rally Plumps Premiums for Call Sellers

With Call Premiums Now Inflated, the Bullish Story in Cotton may be Running out of Steam By: James Cordier, OptionSellers.com In The Complete Guide to Option Selling, you’ll learn that one of the highest probability trades in option selling is writing options in favor of the trend. That being said, writing options against the trend can be a good way to pull high premiums from…

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Avoiding the Biggest Mistake New Option Sellers Make in Commodities
Mar

8

2017

Avoiding the Biggest Mistake New Option Sellers Make in Commodities

While jubilant for the present, the soaring stock market has many investors of means keeping a wary eye towards the future. Such times can often bring “traditional” investors to finally venturing outside the box of “buy and hold” in search of alternative investments. Dipping your toe into the option selling stream, particularly commodities option selling, can be a good way to start enjoying the benefits…

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Target Fat Option Yields from the “Natural” Flow of Springtime Gas Prices
Feb

10

2017

Target Fat Option Yields from the “Natural” Flow of Springtime Gas Prices

Natural Gas Prices Have Cooled Down with winter temperatures. Here is how to potentially pocket high option premiums as Springtime fundamentals kick in Our October 28th advisory suggested the counter-intuitive play of selling call options as natural gas prices headed into winter. Natural gas prices subsequent run up to $4.00 per mbtu did not diminish the significance of seasonal weakness as the new year began….

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Make the Loss Go Away
Feb

7

2017

Make the Loss Go Away

How Successfully Rolling Your Option position can make a losing trade “like it never happened” What is “Rolling Options?” How to Execute “The Roll” APRIL 2015 GOLD Selling an April Gold 1400 call for $600 premium. APRIL 2015 GOLD Gold rallies, increasing the call premium. BENEFITS OF THE ROLL You not only recapture your initial premium, you recapture your loss on the 1400 call. The…

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Target Big Premiums in February with the “Minnesota Squeeze”
Feb

7

2017

Target Big Premiums in February with the “Minnesota Squeeze”

Old School Farmer Secret can pay big dividends for modern day option sellers If you’re looking to get diversified into something uncorrelated to the equities market, you can’t get much further away than the US grain markets. I love trading grains. Unlike stocks, there are no earnings to watch or rate hikes to worry about. There is much less “public interest” swaying grain prices with…

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