Oil Options Trading

Snake Basket.

Options on crude oil reached new highs.

The professionals will "eat your meal"

Looks like easy money, but much more difficult than it seems.

If you really want to learn how to trade the products here are the top 10 books that I recommend.

Top 10 books to read for trade in raw materials.

1. Reminiscense a stock manager
2. The disciplined trader
3. Market Wizards (both 1 and 2 are recommended reading)
4. Sedona Method course http://www.sedona.com
5. Invest like a shark
6. Mastering Futures Trading-sophisticated strategies that work
7. www.ChartingYourFutures.com updated daily on the markets
8. innovative strategies to predict a market (www.LucasWaveInternational.com)
9. Trading is a business
10. Keep your own 3-ring binder of all the losses and profits.

Unless you know very well the industry or inside information (using it is illegal) is a huge gamble. Not much better than going to Las Vegas. Unless you do this to cover other asset or to protect your business (such as Southwest Airlines did with jet fuel), you'll swim with the sharks.

if you know how to do, then you are at ease to do well

high risk - between administrations / global politics will play havoc.

First, if you want to exchange options, you should be able to

(1) demonstrate that you can usually predict whether the implied volatility is too high or too low, and

(2) create a plan for your job (s). The plan should include

(A) the delta risk is acceptable and how you will keep your risk lower than this level that the situation is changing

(B) the risk is acceptable and how you gamma keep your risk lower than this level that the situation is changing

(C) which vega risk is acceptable and how you will keep your risk lower than this level that the situation is changing

(D) the risk is acceptable and theta how you keep your risk lower than this level that the situation is changing

If you are not comfortable with what I suggest you avoid trading options on crude oil. You can always speculate on the future price of crude futures trading if you are so inclined.