If you are a “writer” of commodity options, you inherently have exposed and unlimited risk. However, it’s this risk potential that provides the capacity to reap rewards. Therefore, a savvy commodity option writer understands that managing risk is more important than reaping rewards. The trade setup below details a strategy to help protect short option positions with longer than a month until option expiration. In a follow-up, I will discuss a strategy to help protect short option positions with less than a month until option expiration. These strategies can be tailored to reach your short term objectives and long term goals. Continue reading "Savvy Option Trading for Well-Capitalized Investors"
