Education

Options on stocks vs. options on futures

 

 

options on futures, options on futures vs options on stocks

When I started with options trading, I began with options on futures. The reason for this was that in my very first book about options the author wrote about options on futures. And as I was new to options, it was just a coincidental beginning of mine. But later I found out that the mass of options traders are trading with options on stocks rather than with options on futures. When I noticed this, I was frankly surprised but kept trading options on futures. Meanwhile, I am trading almost only with options on stocks. But not because it’s a better trading in general but just because it’s a more suitable trading for me personally. For all you, folks, who would like to know more about trading with options on futures I wrote this article to give you a first brief overview about it. (more…)