Five Star Commodities & Options

United States-flagUnited States Type: Commodity Trading Advisor (CTA) Registrations: NFA ID: 0437664
Program Past 12 Months Aug YTD CAROR WDD AUM Min Inv Visits
Agricultural Program archived programs N/A 28.62 -59.66 $ 25k 3475
Agricultural Spread Program archived programs N/A - -50.86 $ 25k 2298

Past performance is not necessarily indicative of future results. The risk of loss in trading commodity futures, options, and foreign exchange ("forex") is substantial.

CTA Introduction

The part of the trading program consists of the process of writing naked options on futures. When writing an option, the writer collects funds from the purchaser of the option. In the case of a call, if the price of the underlying futures contract stays the same or declines in value, the value of the option declines. Since the account has collected the premium, the decline in the value of the premium results in a profit for the account. However if the value of the option increases the premium increases and, if the account was required to buy back the option, the account would lose money. In the case of a put, the analysis would be the opposite. The Advisor’s strategy relies on the balancing of short options positions so that, at expiration of each option or at liquidation of a position, the value of the option sold has declined and either expires worthless or is purchased at a reduced value.