CME Group Options Hedging Webinar Series

2 Sep 2020

Webinar Part One

For the commodity buyer: Using Options to Hedge Your Physical Position Against Price Increases

Watch the video to hear Damien Fleurance, Managing Partner at Cadogan Risk Management, discuss options strategies that commercial traders can use to hedge their physical positions. Following a brief review of options theory and delta, Damien reviews a long call, collar, and short put strategy. Using real-life examples he demonstrates the cost, benefits, and risk management used for managing price increases for a physical position, along with trader insight.

Webinar Part Two

For the commodity seller: Using Options to Hedge Your Physical Position Against Price Decreases

In part two, Damien Fleurance discusses options strategies that commercial traders can use to protect their physical position from a decline in market prices. Damien evaluates a long put, collar, and short call strategy, displaying their cost, payoff profile, and risk tolerance on a physical position during a market decline. Additionally, he discusses volatility and other variables that he considers when trading options.