Trading and Hedging with Agricultural Futures and Options - Hardcover

by James B. Bittman (Author)

Today'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.

Front Jacket

Diagrams of basic hedging and trading strategies ... Discussionsof volatility and advanced option pricing topics ... The role ofdelta, gamma, theta, and vega on price movement ... Strategies andscenarios to profit from both rising and falling markets ...Trading and Hedging with Agricultural Futures and Options will helptraders and hedgers understand how agricultural options work, howthey can be used to pursue specific hedging and trading goals, andwhat are the pros and cons of using individual techniques. Clear, concise, and practical, it explains every nuance of these uniqueand historically profitable instruments-and is today's mostcomprehensive, easy-to-understand resource for all traders, regardless of their goals and objectives.

Markets in commodity futures and options first arose-andcontinue to exist-as tools for commodity producers and commodityprocessors to manage risk. Along the way, traders and speculatorsdiscovered their value as instruments for producing consistentlysuperior gains. For both groups, however, authoritative andunderstandable information has been difficult, if not impossible, to find.

Trading and Hedging with Agricultural Futures and Optionsprovides the information you need to get the most benefit from yourtrading program. Written by James Bittman, one of today'sleading teachers and strategists on the effective use of futuresand options, this long awaited book is divided into threesections:

• The Basics of Futures and Options--The vocabulary, mechanics, value components, and price behavior of these dynamicinstruments
• Hedging Strategies--A five-step process illustratingfundamental strategies for both long and short hedgers, with achapter devoted to advanced hedging strategies
• Trading Strategies--Explanations of how to developrealistic expectations and analyze trading alternatives, includinguse of the OP-EVALF computer program

Back Jacket

Diagrams of basic hedging and trading strategies . . . Discussions of volatility and advanced option pricing topics . . . The role of delta, gamma, theta, and vega on price movement . . . Strategies and scenarios to profit from both rising and falling markets . . . Trading and Hedging with Agricultural Futures and Options will help traders and hedgers understand how agricultural options work, how they can be used to pursue specific hedging and trading goals, and what are the pros and cons of using individual techniques. Clear, concise, and practical, it explains every nuance of these unique and historically profitable instruments-and is today's most comprehensive, easy-to-understand resource for all traders, regardless of their goals and objectives.

Markets in commodity futures and options first arose-and continue to exist-as tools for commodity producers and commodity processors to manage risk. Along the way, traders and speculators discovered their value as instruments for producing consistently superior gains. For both groups, however, authoritative and understandable information has been difficult, if not impossible, to find.

Trading and Hedging with Agricultural Futures and Options provides the information you need to get the most benefit from your trading program. Written by James Bittman, one of today's leading teachers and strategists on the effective use of futures and options, this long awaited book is divided into three sections:

• The Basics of Futures and Options--The vocabulary, mechanics, value components, and price behavior of these dynamic instruments
• Hedging Strategies--A five-step process illustrating fundamental strategies for both long and short hedgers, with a chapter devoted to advanced hedging strategies
• Trading Strategies--Explanations of how to develop realistic expectations and analyze trading alternatives, including use of the OP-EVALF computer program

Author Biography

JAMES B. BITTMAN is a staff instructor at The Options Institute, the education division of the Chicago Board Options Exchange (CBOE), where he teaches seminars on options to investors in the United States and Europe. He is also on the faculty at the Illinois Institute of Technology, and holds a commodity options membership at the Chicago Board of Trade (CBOT). A successful options trader for more than 20 years, Bittman also wrote the best-selling Options for the Stock Investor.