The origins of futures trading are closely linked to the emergence of trading operations and date back to a very distant era.

Let's take an example.

Faced with overproduction, coffee producers decided to combat the potential collapse in the price of their produce. They purchased from wholesalers the right to sell their coffee at a predetermined price and deadline and, in exchange for this right, agreed to pay the wholesalers a premium.

Conversely, wholesalers wanted to protect themselves against a price increase and bought from producers the right to be able to buy specific commodities at a price and on a date determined in advance and, in exchange for this right, undertook to pay a premium to the producers.

The basic idea of futures trading was therefore born and it consisted of freeing traders and producers from risk.

Covered calls, also called "Covered calls", are very often used by hedge funds or certain very experienced individual traders.

A covered call is an options strategy where the investor buys (or already holds) a long position in a stock or other asset and sells call options on that same asset.

From 50K of investment under management, we strongly recommend that you exercise a call option sale issue in order to protect yourself from a drop in the price of your underlying asset.

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The speculator wants to acquire a position in the market. He bets on either a price rise or a fall.

Let's say you have CHF 2,000 and you believe that ABB shares (current price CHF 20) will rise to CHF 25 over the next 2 months.

Variant A)

Purchase of 100 ABBN shares at 20 CHF = CHF 2000.00

Sale of 100 ABBN shares at 25 CHF = CHF 2500.00

Profit = 500 CHF or 25%

The solution we propose:

Variant B)

Purchase of 5000 call options at 0.40 CHF (strike 22 CHF) = CHF 2000.00

Sale of 5000 call options at 3 CHF (strike 22 CHF) = CHF 15000.00

Profit = 13,000 CHF or 650%

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