10 March 2007

Writing Commodity Options

A few of you still reading this infrequent drivvle of mine have mentioned the writing of options over commodity futures. I don't have enough experience with commodity options to be authoritative, but I have read what I think is an excellent book on the topic and it deals extensively with written options on futures.

This book is written by a bloke called Stuie Johnston. Some have criticized it for its conversational and irreverent writing style, but I found it not only occasionally hilarious, but very good at setting out a philosophy and methodology for premium collection on commodity futures.

Be prepared for a few statistics and discussion on seasonality... and especially what Stu refers to as NON-seasonal trades.

Check it out

He also runs a very good seasonal trading database site that if/when I have a crack at this, I will definitely subscribe to. www.timeandtiming.com (no financial connection blah blah)

4 comments:

Simply Options Trader said...

Welcome back! Looking forward to more postings from you :)koo

Sigmas said...

Thanks for the comment koo, :)

I've been lurking around, but just going through a change of circumstances that has kept me quiet for a while... missus and i are moving country soon, so posts will be a bit sparse until we get settled.

Cheers

Simply Options Trader said...

oic, any chance you moving to Singapore? lol!

All the best for your relocation and hope you and your missus settle down soon.

SAJ said...

Hi, Sigmas--

Many thanks for the kind word about the book and the website. Glad you found the occasional hilarity in the book, too; a lot of its readers, while liking the book well enough, apparently are somewhat humour-impaired, heh heh heh.

The website, btw, features some amount of historical options analysis, but is principally dedicated to historical and seasonal analyses of futures markets. If you or your blogmates have any questions about it, I'd be delighted to answer them for you.

Irreverent? Moi???

Not quite sure what to make of ''Stuie'' -- good Lord, I haven't been called that since college days, decades ago. ;^)

Best regards to you and your blogmates,

Stu Johnston

St. Louis, MO, USA
saj@www.timeandtiming.com