The Diversified trading program utilizes Howard Bernstein’s 25+ years experience trading in the futures markets in order to develop a multi-strategy and multi-market approach to trading both commodity futures and options on futures trading.
Commodity Option Selling - This strategy consists of selling or "writing" options (puts and calls) on futures contracts in the crude oil, coffee, soybeans, silver, natural gas and corn markets, among others. The program may also, from time to time, purchase options and may employ the use of hedged strategies such as option spreads, strangles, straddles, or may purchase or sell futures to offset an open option position.
Please note that the seller of an option is at unlimited risk.
Seasonal and Spread Trading - We seek to profit from seasonal patterns inherent in various commodity markets. The trades taken may be outright long (buy) and short (sell) positions or spread trades between two similar commodities. Seasonal trading may also employ the use of buying and/or selling options.
HB Capital Management believes that the development of a commodity trading strategy is a continual process. As a result of further analysis and research into the performance of our methods, changes have been made from time to time in the specific manner in which these trading methods evaluate price movements in various commodities, and it is likely that similar revisions will be made in the future. Of course, no assurances can be made that any trading strategies will produce profitable results.
Note: There are substantial risks involved in trading options and futures. The high degree of leverage that is often obtainable in options trading can work against you as well as for you. The volatile nature of the futures and the high degree of leverage used in options may result in clients losing more than their original investment. Past results are not necessarily indicative of future results. Please refer to HB Capital Management Inc.'s disclosure document for more information.