FUTURES AND OPTIONS STRATEGY GUIDE FUTURES AND OPTIONS STRATEGY
Chicago Mercantile Exchange
30 South Wacker Drive
Chicago, IL 60606
Price: $3 per pair
Promotion departments at the exchanges have the difficult job of educating an audience that ranges from
the abjectly ignorant to the extremely sophisticated. Few span the range as well as the Chicago
Mercantile Exchange's (CME) marketing division, particularly on the high end, where its Marketing
Perspectives Topics on Options and Financial Futures is a must-read for sharp individuals and
professional managers looking for how-to information on developing trading and hedging strategies.
Now, CME marketing has come up with an incredible product that covers ground I haven't seen covered
as well, or at all, in hundreds of books and articles on options.
The Futures and Options Strategy Guide shows you how to select an options position, given your outlook
on the underlying and volatility, and then goes on to give you 42 pages of how to follow up that position
as things change. Best of all, it does the follow-up graphically. That just isn't available anywhere else.
Figure 1 is what the world usually presents you: how to get into an initial position. This ground has been
covered hundreds of times, so you can get the details from any text (or the CME's Strategy Chart booklet,
available for $1). However, one of the strong points of using options is the ability to modify the position
over time to add protection or enhance profitability. Figure 2 shows you how that would be done for
something tricky, like a ratio call spread. If, for example, volatility were rising on you and your outlook
had gone bearish, you'd convert by liquidating the calls and selling the underlying futures.