Strategy Selection

Time For Options does not specialize in “trade picks” or specific trade recommendations.  We work with customers that have opinions about a given futures market, and then select what we feel is a suitable trading strategy that reflects the opinion or market bias held by the customer.

The cornerstone of each trading strategy is risk management and capital preservation.  We prefer using option spreads to reflect market opinions.  By using option spreads, it is sometimes possible to reduce the need to perfectly time the market. Sometimes, combining futures and options presents acceptable risk/reward parameters.

For example, suppose a customer is bearish Gold and wants to use options linked to the Gold Futures market to profit from a downward move in Gold.  If the April contract is trading at 1150.00, we may be able to create a strategy that would allow Gold to trade up to 1175.00, while keeping a loss on the position much lower than would be endured if an outright futures contract was sold at 1150.00.

We calibrate your risk parameters by identify the value of the position when the underlying futures market is at various levels over different time frames.  We also identify where the underlying futures market needs to be priced in order to realize profit goals.

Not only is strategy selection important, it is also import to use options that are fairly priced and have the proper amount of time on them.

Prior to entering a trade, we prefer to know your exit price, which is linked to one of the follow: 1) the underlying futures contract moves to a specified level; 2) the position earns or loses a certain amount; 3) a certain date is reached.