options on futures...noob help!

Discussion in 'Options' started by TGpop, Apr 13, 2010.

  1. TGpop

    TGpop

    so i want to being trading currency futures soon but instead of stop losses i want to hedge myself with options;i will be holding for a long time . also possible that i trade commodities and would hedge myself too in case of stops runs, lock limits etc; thing is i'm not so sure i should be considering options instead of stoplosses yet as i know bugger all about them!

    so any good books out there teach options on futures well? do options on futures operate in the same way options on stocks do? so i could just read 'options made easy'?

    thanks; by the way is using a put instead of a SL a wise idea?
     
  2. if you don't know about options then no...you can learn though: Sheldon Natenberg's book is the source for learning about options...
     
  3. TGpop

    TGpop

    yes that book was recommended to me by a successful trader as well too; i think i'll take the plunge. thanks!
     
  4. Natenburg is a decent start in understanding greeks, but it doesn't explain anything about trading, or making money.

    I would suggest you start papertrading your strategy. Watch the daily p/l swings and investigate why you made/lost money. That is by far the best way to learn.