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It is my pleasure to welcome Carley Garner (aka @decarleytrading), for our 415th webinar event, on Tuesday, March 2nd @ 4:30 PM Eastern US.
The title for the event is "Call Option Buying: The New Pain Trade?", and bullet points include:
Will call option buying soon be the new pain trade? If so, how can we prepare ourselves for the implications?
In recent months, buying overpriced call options in the S&P has felt, to some, like a risk-free proposition. Stocks only go up, right? The absurdity of the call option buying froth is best portrayed in the now infamous TikTok video in which two young investors encouraged followers to quit their jobs and trade stock options instead. The strategy is simple, buy calls when a stock is moving higher and then sell at the first sign of the stock going down. What could go wrong? Join us to discuss specific commodity and stock index futures options markets to discuss overheating and overzealous speculation.
- Aggressive call option buyers aren’t just participating in GameStop and other meme stocks, E-mini S&P 500 futures are seeing unprecedented call buying.
- The call option buying acts as a vacuum to higher prices because market makers and short call sellers must buy futures to hedge risk.
- We are seeing double the call option volume as puts in popular strikes.
- Option trading volume has been concentrated in short-term expirations.
- What does all of this mean and how to prepare for the possible implications?
About Carley Garner:
Senior Commodity Market Strategist and Broker, STOCKS & COMMODITIES Magazine Columnist, TheStreet.com Contributor, and Author
Carley Garner is an experienced futures and options broker with DeCarley Trading, a division of Zaner Financial Services, in Las Vegas, Nevada.
Her commodity market analysis is often referenced on Jim Cramer’s Mad Money on CNBC and she is a regular guest on Bloomberg Television’s Options Insight segment with Abigail Doolittle. Garner is a regular contributor to TheStreet.com and its Real Money Pro service and is also a regular on the speaking circuit and can be found at TradersEXPOs and MoneyShows throughout the country. Garner is also an award-winning commodity futures and options trading book author.
In addition to Trading Commodity Options with Creativity, Garner has authored Higher Probability Commodity Trading; A Trader's First Book on Commodities (three editions); Currency Trading in the Forex and Futures Markets; and Commodity Options. Her e-newsletters, The DeCarley Perspective and The Financial Futures Report, have garnered a loyal following; she is also proactive in providing free trading education at https://www.DeCarleyTrading.com.
I am exploring option to use 'options on futures' to manage risk of open my futures positions instead of stop loss. May I know whether anyone uses this method for risk management and advise which brokers recognize such hedging method?
