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Futures & Options Trader February 2009
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CONTENTS
Options Trading System Lab
Adjusting covered calls
This options strategy works best when it
changes along with the market’s trend.
By Steve Lentz and Jim Graham
Roundup of the recent action in the
futures market.
Trading Strategies
The CFTC’s Commitments of Traders report
isn’t easy to interpret, but recent academic
studies shed light on how hedgers and specula-
tors tend to trade — and how this information can
translate into trading strategies.
By David Bukey
News
U.S. futures exchanges off
After extending their strings of record annual
volume last year, major futures exchanges sput-
tered at the outset of 2009, continuing the trend
that began in Q4 2008.
Analyzing the tendency of gold to make
runs of lower lows or higher highs in bull and
bear markets.
By FOT Staff
Momentum, volatility, and volume
statistics for futures.
Many traders buy option straddles to
capitalize on market uncertainty. But a
backspread is a cheaper alternative if you
have a directional bias.
By Marc Allaire
2
February 2009 • FUTURES & OPTIONS TRADER
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CONTENTS
Notable volatility and volume
in the options market.
Futures & Options Watch
A look at the relationship between commercials
and large speculators in the futures markets.
A day or two’s trading in the E-Mini Nasdaq
100 futures has its ups and downs … and
downs.
An iron condor on JPMorgan Chase falls flat.
Have a question about something you’ve seen
in Futures & Options Trader?
Submit your editorial queries or comments to webmaster@futuresandoptionstrader.com .
Looking for an advertiser?
Click on the company name below for a direct link to the ad
in this month’s issue of Futures & Options Trader.
4
February 2009 • FUTURES & OPTIONS TRADER
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CONTRIBUTORS
A publication of Active Trader ®
For all subscriber services:
www.futuresandoptionstrader.com
Editor-in-chief: Mark Etzkorn
metzkorn@futuresandoptionstrader.com
Managing editor: Molly Goad
mgoad@futuresandoptionstrader.com
Senior editor: David Bukey
dbukey@futuresandoptionstrader.com
Marc Allaire is a consultant to the Chicago Board
Options Exchange, the Montreal Exchange, and other options
industry firms. He also teaches finance at the University of
Indianapolis and investments and derivatives at the Ningbo
Institute of Technology in China. A former senior staff instruc-
tor at the Chicago Board Options Exchange’s Options Institute, Allaire was
a featured contributor to the CBOE’s book Options: Fundamental Concepts
and Trading Strategies , co-authored Understanding LEAPS , and is a regular
contributor to professional publications on options, LEAPS, and trading
strategies. His latest publication is The Options Strategist . He can be reached
Contributing editor:
Keith Schap
Associate editor: Chris Peters
cpeters@futuresandoptionstrader.com
Editorial assistant and
webmaster: Kesha Green
kgreen@futuresandoptionstrader.com
Art director: Laura Coyle
lcoyle@futuresandoptionstrader.com
President: Phil Dorman
pdorman@futuresandoptionstrader.com
Publisher,
Ad sales East Coast and Midwest:
Bob Dorman
bdorman@futuresandoptionstrader.com
Steve Lentz ( advisor@optionvue.com ) is a well-estab-
lished options educator and trader and has spoken all over
the U.S., Asia, and Australia on behalf of the CBOE’s Options
Institute, the Options Industry Council, and the Australian
Stock Exchange. As a mentor for DiscoverOptions.com, he teaches select
students how to use complex options strategies and develop a consistent
trading plan. Lentz is constantly developing new strategies on the use of
options as part of a comprehensive profitable trading approach. He regu-
larly speaks at special events, trade shows, and trading group organiza-
tions.
Ad sales
West Coast and Southwest only:
Allison Chee
achee@futuresandoptionstrader.com
Classified ad sales: Mark Seger
seger@futuresandoptionstrader.com
Volume 3, Issue 2. Futures & Options Trader is pub-
lished monthly by TechInfo, Inc., 161 N. Clark St.,
Suite 4915, Chicago, IL 60601. Copyright © 2009
TechInfo, Inc. All rights reserved. Information in this
publication may not be stored or reproduced in any
form without written permission from the publisher.
The information in Futures & Options Trader magazine
is intended for educational purposes only. It is not
meant to recommend, promote, or in any way imply
the effectiveness of any trading system, strategy, or
approach. Traders are advised to do their own
research and testing to determine the validity of a trad-
ing idea. Trading and investing carry a high level of
risk. Past performance does not guarantee future
results.
Jim Graham ( advisor@optionvue.com ) is the product
manager for OptionVue Systems and a registered investment
advisor for OptionVue Research.
FUTURES & OPTIONS TRADER • February 2009
5
CONTRIBUTORS
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