You’re a seasoned professional when it comes to options trading. You may have even partnered with us for our beginner and intermediate options trading support programs. You are ready to use options trading to its fullest potential. If you are ready to take it to the next level once again, advanced options trading support with Cannon Trading is the next step for you.

How to tell if I am Ready for Advanced Options Trading Support

• You understand the difference between call and put options, and are comfortable using both.
• If you have a firm grasp on the fundamentals elements that determine options values.
• You are able to interpret data from risk graphs and greeks to make informed trading decisions.

What Advanced Options Techniques and Abilities will you be Exposed to:

• Futures options and why they behave like they do.
• How to measure the sensitivity of movements in an underlying future.
• Options pricing models.
• How volatility in the overall market affects your options position.

These concepts are meant to build on your existing knowledge of options trading for a more well-rounded technical knowledge. Go from simply trading to understanding why options behave the way they do through careful research and studying. Many advanced strategies then use this advantage in order to exploit additional opportunities.

What Makes an Options Trade Advance?

An options trade will always boil down to either a call or a put option. However, some strategies are known to be far more complex than others. At their base, options trades involve two options in the trade, and are appropriately known as “two-legged” trades. Adding more “legs” or options are what brings simple trades into advanced territory. Your partnered broker will help you to determine when it is appropriate to implement these advanced strategies and advise you on when to use when. These advanced concepts, strategies, and techniques offer unique opportunities an average broker would not see on the surface through a gained insight and research. Some of the strategies that will become available to you:

The Bull Call Spread - The bull call spread, as the name would suggest, involves call options, and pairing a lower-strike call with a higher-strike call. Or a long or short call respectively. Essentially, the Bull Call Spread relies on the underlying contract/futures rising - so close market analysis is critical.

The Bear Put Spread - The bear put spread can be seen as a similar strategy to the Bull Call Spread using puts. Conversely, this strategy relies on the underlying futures contract declining in value, but not lower to the strike price.

The Long Straddle - The long straddle combines the two, and pairs a call and a put together at the same expiration and strike price. This is ideal for situations where an advanced trader is unsure if their underlying future will rise or fall, but can confidently predict that it will move in one direction.

The Long Strangle - Unlike a long straddle that pairs out-of-the-money options, a long strangle uses at-the-money options. This may be the cheaper strategy to set up in the short term, but relies on much greater movement than a long straddle to be beneficial.

While these are only a few examples of advanced options trading strategies, you will be exposed to many more during our advanced options trading support. With the help of the experienced brokers at Cannon Trading, you will be exposed to robust strategies, techniques, and education materials to improve your options trading portfolio. Your broker will then support your decision making process when working with a high level strategy for the best possible decision for your situation and your needs. Partner with Cannon Trading to make the most of all that options trading has to offer.

Disclaimer - Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources.