Description
Book SynopsisToday's Premier Guidebook for Understanding Agricultural Options and Making Them a Key Part of Your Trading and Risk Management Strategy
Agricultural futures and options represent a vital niche in today's options trading world. Trading and Hedging with Agricultural Futures and Options takes an in-depth look at these valuable trading tools, and presents clear, proven strategies and techniques for both hedgers and traders to achieve their goals while minimizing risk.
Relying on nuts-and-bolts techniques and examples as opposed to the mathematical models and theory favored by other options-trading manuals this practical, hands-on book discusses many topics, including:
- How hedgers and traders can use options effectively with realistic expectations
- Methods to understand price behavior including the "Greeks" (delta, gamma, vega, and theta)
- The importance of volatility and little-known ways to make it work to your advantage
For producers and processors, agricultural futures and options are necessary components for controlling costs and hedging risks. For traders, they are proven vehicles for earning exceptional risk-adjusted profits. Whichever side of the aisle you are on, Trading and Hedging with Agricultural Futures and Options will provide you with the answers you need to effectively use these versatile tools and make them an integral part of your business.
Table of ContentsContents
Foreword by Willard R. Sparks, CEO, Sparks Companies ix
Acknowledgments xiii
Disclosures xv
Introduction xvii
Part I The Basics of Futures and Options 1
Chapter 1 The Terminology of Futures and Options 3
Chapter 2 Diagrams of Basic Trading Strategies 20
Chapter 3 Diagrams of Basic Hedging Strategies 51
Chapter 4 Why Futures and Options Have Value 70
Chapter 5 Option Price Behavior 81
Chapter 6 Volatility 96
Chapter 7 Option Price Behavior II: The Greeks 117
Part 2 Hedging Strategies 143
Chapter 8 Strategies for Long Hedgers 145
Chapter 9 Strategies for Short Hedgers 171
Chapter 10 Advanced Hedging Strategies 195
Part 3 Trading Strategies 223
Chapter 11 Pricing and Graphing Strategies with OP-EVALF™ 225
Chapter 12 Buying Options 244
Chapter 13 Selling Options 265
Chapter 14 Vertical Spreads 283
Chapter 15 Straddles and Strangles 303
Chapter 16 Ratio Spreads 320
Chapter 17 Conclusion 334
Index 341
