I currently use Farr Financial, paying $18 per option contract. Farr's "OK". Nothing special. I'm low maintenance, this isn't my first rodeo, when I ask the rare question I expect a prompt, accurate answer. Their reply is generally "HUH?" But I don't ask the simple questions, been there, done that. I generally enter a position in grains, or softs, by selling a put. Occassionally I'll be assigned the contract, so I'm looking for the least expensive online commodity broker for grains and softs options and contracts. I understand the numerous additional charges are all standard to the industry. Thank you for your time.
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futures and forex trading in any time frame. ... options "online stock" hurst "how to invest" "stock option" " ...
do I need a commodities broker or can I use a stock/option broker?
I could buy a oil company stock or a fund of oil companies.
what other ways are there? is there a ETF for this?
thanks
There are a large number of options. You can buy oil futures through a commody broker. There are a number of ETF's tied to oil stocks, drilling stocks, and oil service stocks.
One ETF is directly tied to the price of oil. USO. It has an expense ratio of 0.50%. Currently trades at about $69.81 a very slight discount to net assets. It is relatively new having been created in April.
The most active ETF participating in energy is XLE. An advantage of this fund is that it pays a dividend, about 1.4%. Its holdings consist of large cap oil and oil service stocks. Expense ratio is 0.24%. Largest holding is Exxon-Mobile, 15.6% of the portfolio. ytd return of 13.5%
There are several other ETF's. OIH, oil service ETF with ytd return of 16.4% and PTH in the same category with 14% ytd.
IXC global energy trust with ytd return of 13.0%. IYE U S energy trust also with return of 13.0%. PXE oil production trust with return of 11.0%.
A major play in drilling besides OIH, would be a stock like NBR, one of the major oil well drillers with about 1300 rigs world wide. As the price of oil has increased, the price of renting a drilling rig has increased even more due to demand and supply. But if the demand for oil decreases, the demand for oil rigs decreases even more. So oil drillers are like a leveraged play on the price of oil.
How can I become a Commodities broker, where can I get the training & education so I know all about Futures and Options to be a sucessful broker?
I suggest you start by learning about futures and options trading from some of the better books on the subject. One of the best is "Options, Futures, and Other Derivative Securities" by John C. Hull. This is an advanced text, any you may want to start with some lower level books first. I also suggest if you to not have some background in statistics and basic calculus you will want to get some texts on those subjects.
One book I consider "must read" is "Options Volatility & Pricing" by Sheldon Natenberg.
Before becoming a broker you will also need to take appropriate license examinations, such as the Series 3 exam for "Futures and Commodities". There are special preparation courses for these exams, if you are interested, such as the one at
http://www.aitraining.com/series3.htm
My main account is with Scottrade.It is fine for stocks but trading options with them is more expensive than buying stocks. I would like to be able to sell naked puts and calls(for buying spreads,straddles,etc) Suggestions? Also,are there firms that allow you to buy otions of commodity futures or do you have to open a commodity account?
Interactive Brokers and Thinkorswim are two great brokerages for options that will allow naked selling.
Interactive has cheaper commission while Thinkorswim has the best platform that can analyze any option position.
Both firms can do futures.
I have an avid interest in the financial markets and I want to start investing in commodities. All I need is materials to read, and brokers I can speak to, and mostly, advice from experienced traders or enthusiasts.
If you can pull up 100 bux a week that's good. But if you really can pull out 100 bux a week, you should do $400 a month, which will save you tons on commission.
Another head for simulate
Yesterday’s modern day selling and this morning’s premature morning make good through turned out to be nothing more but another buying occasion for the bulls. The yardstick is predictable but traders still be published to have a pragmatic term swallowing the positive medicine.
The day’s information was adulterated and so was the earnings, but the customer base made its way higher on what seemed to be “mulligan” line of work. In the last 30 minutes of the spondulix retail exposed, the S&P dipped severely and unexpectedly on expos of a Wells Fargo dispossess. Today was the markets way of eliminating the overreaction and enabling a “do over”.
In in day marketing, there was talk of a significant number of call spreads sold in the SPX. This infers that a monumental speculator is either bearish the bazaar notwithstanding the afternoon go or was sustained the spread and has premised up on the prospects of a stinking rouse in the coming weeks.
Coming into the seating, it seemed as though our downside aim of 1062 in the S&P was on the prospect. However, after reaching a low abutting 1070 the make available turned on a dime. It is stringy to say whether 1070 was “it” for the emendation and we are headed higher (if so, look for 1108) or if the day’s gains were fully mechanical wriggle out. For now, we will refrain from making any predictions until we can get a more advisedly fondle on the appraisal effectiveness.
In the meantime, momentous mainstay in the S&P lies at 1063 and partisans is close 1108. In the NASDAQ, look for 1720 to be bigger back up and 1777 as guerilla movement. Almost identical levels in the Russell can be found at 583 and 627.
* Due to together constraints and our fiduciary levy to put clients first, the charts provided in this newsletter may not bring to light the widely known hearing figures. However, buy criticism and commentary does.
**Seasonality is already be factored into common prices, any references to such does not say tomorrow's bazaar undertaking.
...Investment U - Oct 26, 2009
BBC NewsAlthough you'd need to conduct a trade through a commodity broker, you can access these markets electronically. Stick with limited-risk option strategies. Crude Oil Trades Below $79 as Demand Gains Lag Behind PriceOil Rises Nearly $3 After US GDP Growthall 2,234 news articles »
Reuters - Oct 26, 2009
US stocks fell sharply, wiping out earlier gains as the US dollar rose and commodity prices waned. The weakness spilled into materials and financial shares. and more »Reuters - Oct 29, 2009
The charge for IMAREX, a Norwegian-based freight and energy exchange and interdealer broker, was due to a decline in IMAREX fair value relative to the fair and more »Bloomberg - Oct 30, 2009
Duff's $100 Million Hedge Fund Spree Fails to Lure InvestorsIn 2008, 80 percent of the commercial property in Greenwich was occupied by hedge fund firms, according to real estate broker CB Richard Ellis Group Inc. and more »Hollywood Reporter - Oct 30, 2009
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Commodity Brokers - Futures Brokers and Online Commodity Brokers
As a commodity broker you can trust, you can trade commodity options and commodity futures ... Commodity Futures and Options traders can expect a great deal from ...