I have so far been trading with Options only- primarily selling. Straddles, Strangles and Spreads. Was trying to figure out what is the best way to combine “Futures” with this? Implications on risk and profitability? Any examples or suggestions. Thanks in advance,
the beauty of options is you can be both neutral and directional with them, with futures you can only be directional… either bullish or bearish… you can use options to hedge your futures position and limit your losses… other than this don’t find any proper use… you can also use futures in combination with option for neutral trades but you will have to always maintain the delta which will mean lots of adjustments to your options positions and you know option delta is always changing…
Biy future and sell call