Selling Commodity Options is not beyond you. Many financial advisors may avoid certain subjects when you allow them to “choose what is appropriate for you.” Their mission is to match you with an investment that isn’t beyond your sophistication. They are not in the business of teaching you how the best methods work – and then taking the time to show you how to use it correctly.
Nobody unfolds a road map to find driving directions, we simply use the GPS. The new way we navigate gives us where to find gas, food, traffic reports, re-routes,
weather alerts, and calculates arrival times and distances. This is the way modern investing should work. When improvements and additions are made we should adapt to those advantages.
Building a second source of income and knowing how to re-invest it is the shortest path to relief from all sources of financial stress.
With my newsletter, The Time Farming Training Bulletin, I help people learn how to use one particular option-selling strategy that can create a second income for them. Commodity contracts often have reliable seasonal price tendencies. Selling far Out-of-the-Money options in harmony with these seasonals, offers opportunities with a high probability of success. I send out the actual trades I place in my own accounts along with my comments, seasonal price charts, research on the underlying commodity, and relay why I think the strikes I choose have a high probability of success. In other words, I help my subscribers learn the “how/why/what/when” of this type of trading. I do not tell my readers what to trade; I am not a trade advisor. Subscribers are meant to use my information to learn this type of trading and any trades they place are strictly their own responsibility. I offer a free 60-Day trial to The Time Farming Trading Bulletin, so reader can either ledger or use paper-trading in their online account to follow along and learn.
This type of trading is not suitable for everyone and there is risk. What I do is to give my readers a chance to study the trades I take and then judge for themselves in real time – how they might use this trading strategy to build a second income. At present (11/05/2017), I have trades that will turn profits:
- If Natural Gas doesn’t go over 4.5 (it is now 3.106 basis JAN18 futures) in the next 51 days.
- If Crude Oil doesn’t trade over $65 a barrel in the next 39 days. It’s now $55.84 basis JAN18 futures.
- If the nearby Corn contract price won’t be over 450/bushel in the next 19 days (it’s 349/bu. now.)
On the days I placed each of these trades, I sent out price charts, USDA reports, EIA.gov, 15-Year history of the commodity prices, my commentary, and the probability in percentage of whether the trade might be successful. My readers are privy to all the information I used to locate these trades. Never believe any golfer who won’t admit he doesn’t hit every ball straight. Due to circumstances, sometimes these trades, no matter how great they may look, won’t succeed. I have a standard way of money-managing to handle the few trades that don’t work out – and I share that with my readers also. In order to practice good money management, you must always have an exit plan for every trade that is easy and simple to follow. This is responsible risk management in any kind of trading.
I have a book that explains this type of trading; it is under 100 pages and about a two-hour read –full of charts, illustrations, and plain-language details. It’s under $20 with free Prime shipping at: http://bit.ly/SellingCommodityOptions .
You can also get the free 60-Day trial of my newsletter and see for yourself exactly how it all works. The sign up page is at:
Thank you and good trading. – Don A. Singletary