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Posted October 15, 2025 at 11:45 am
Are you only tracking market direction? You’re getting half the story. CME Group Economist Dr. Mark Shore covers the two volatility metrics that together provide a fuller picture of market sentiment.
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Originally Posted October 15, 2025
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Trading options on futures contracts involves substantial risk and is not suitable for all investors. Selling (writing) options on futures exposes the seller to potentially unlimited risk of loss, as the seller may be required to fulfill the terms of the contract if the market moves unfavorably. Losses can exceed the initial margin or premium received. Before engaging in short options strategies on futures, you should carefully consider your financial situation, investment objectives, and risk tolerance. You must fully understand the risks involved, including the possibility of losing more than your initial investment. The Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) require that you receive and review the Options Disclosure Document (ODD) before trading options on futures. This document explains the characteristics and risks of options trading.
Options involve risk and are not suitable for all investors. For information on the uses and risks of options, you can obtain a copy of the Options Clearing Corporation risk disclosure document titled Characteristics and Risks of Standardized Options by going to the following link ibkr.com/occ. Multiple leg strategies, including spreads, will incur multiple transaction costs.
Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at ibkr.com.
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