Options Trading
CPM Group typically will trade futures and options, rather than physical metal.
Futures offer leverage directly, as well as certain additional advantages in terms of ease of trade and a central clearinghouse as the trading counterpart.
Options strategies typically employed by CPM Group are compound options designed to give our investors an outsized exposure to beneficial price developments compared to limited exposure to potential losses.
The two options on the following pages are options strategies that CPM employed in 2016 and 2017 for clients.
This is neither an offer to sell nor a solicitation of any offer to buy any securities in any fund managed by us. Past performance of the products and services is no guarantee as to their performance in the future. This presentation is not an advertisement and is not intended for public use or distribution. The contents in this document we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, forecasts contained herein are as of the date hereof and are subject to change without prior notification. Our salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed in this research. Our asset management and investing businesses may make investment decisions that are inconsistent with the recommendations or views expressed here We and our affiliates, officers, directors, and employees will from time to time have long or short positions in and buy or sell, the securities or derivatives, if any, referred to in this document. This document is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. One should consider whether any advice or recommendation in this document is suitable for their particular circumstances and, if appropriate, seek professional advice, including tax advice. The price and value of investments referred to in this document may fluctuate. Past performance is not a guide to future performance, future and or options returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. Certain transactions, including those involving futures, options, and other derivatives, give rise to substantial risk and are not suitable for all investors.