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Research Center
At OpVest, we research every sector of the commodities market for our recommended trades based on four proprietary market surveys. In order to attempt to ensure the integrity of our trade recommendations, OpVest utilizes advanced computer models to identify mathematical disparities in the market. Such advantages allow our surveys to search for the following:
- Directional Trades: Option Strategies designed to take advantage of trends or cyclical patterns.
- Implied Volatility Trades: Option Strategies designed to take advantage of high or low implied volatility conditions.
- Statistical Volatility Trades: Option Strategies designed to take advantage of high or low implied statistical volatility.
- Systematic Trades: Option Strategies evolving over time with recommended adjustments based on the underlying contract movements and to changes in implied volatility.
TRADING PLAN
The trading plan for Speculative Positions will suggest when to close positions. The exit will be triggered when the underlying commodity moves to a specified level; when the position earns or loses a predetermined amount; or when a specified date has been reached.
The trading plan for Systematic Positions, on the other hand, will specify adjustment points. Adjustments will be made to try to reduce exposure to market direction; to changes in implied volatility; or to changes in negative time decay. An adjustment may close some positions and add new positions in their place, or an adjustment may leave an existing a position in place and add new options to them.
GREEK ANALYSIS
The Greeks demonstrate how a position should respond relative to the underlying futures warrant (delta and gamma); to expanding and contracting implied volatility (vega); and to the passage or erosion of time (theta). Our Graphic Analysis shows projected results of a strategy, or a position (s), over a range of underlying prices and over the passage of time.
VOLATILITY GRAPH
The Volatility Graph demonstrates how implied and statistical volatility have fluctuated in the past and their percentile ranking over the past six years. The Price Chart shows how the underlying commodity has behaved in the past. It is a chart for continuous contract.
OpVest Research Center FUTURES AND OPTIONS TRADING INVOLVE RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. This publication is intended solely for information purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or sell or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. In no event should the content of this market letter be construed as an express or implied promise, guarantee or implication by or from Option Investments Inc. or any of its officers, directors, employees, affiliates or other agents that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. All investments are subject to risk, which should be considered prior to making investment decisions. Privacy policy available upon request.