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TFC Commodity Trading Forum

Re: CORN & AXC... trout
In Response To: Re: CORN & AXC ()

Well.....I could show you on paper I guess on what I meant, because actually it is a bit the same...

Options DO completely lose their premium on one hand in the short term if the market is slow to turn...

But...

IF you average out your option buying AND the market does indeed turn within your time frame the leverage you have with options makes up for the difference in losing more on the front side by soaring profits on the backside.

Of course their are lots of variables and you do need the market to take a strong turn in your favor within your projected time frame, so it is riskier but also much more profitable in many cases.

BTW did you happen to read the link I provided about silver demand in China? Seems a lot of silver being consumed recently by those folks, lol.

Good trades.