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Why the Professional Futures Traders Look at the COT Report
Friday, September 03, 2010

by Fred Oltarsh of Options Strategy Network

This week's release of the Commitment of Trader's Report by the Commodities Futures Trading Commission provided some very interesting information for evaluation. Many traders use the report as a gauge to determine the number of Small Speculators that are getting into a market. They often use this information as a contra-indicator of future market direction. Others may look at the Commercial Traders to see if the group seems to be getting too extended during a prolonged move. For this reason we have attached this week's Cotton Chart from today's COT report. The Chart shows some very relevant information pertaining to the prolonged move in Cotton. The COT Report provides a multitude of interesting information and is available each week for 29 futures contracts. Please email us and we'll send you the entire report. Email us at info@libanman.com and we'll add you to the list of our weekly recipients.

Cotton Commitment Of Traders Report

The COT report is useful because it Analyzes Futures and Options' Combined Adjusted Net Deltas for the following Trade Groups: 1) Commercials, 2) Swap Dealers, 3) Managed Funds, 4) Large Speculators and 5) Small Speculators. There are 20 weeks of information in a highly usable Chart form.

The information below shows the Net Delta of each group described above. The full report includes Charts for approximately 30 Futures Contracts including Financials, Currencies, Energy, Metals, Softs and Grains. If you are interested in receiving the full report, please email us at info@libanman.com. Provide your name and phone number and we'll add you to our list of weekly recipients. The COT Report is a highly informative tool for trader's interested in gaining a larger picture of market participants. At Libanman, it is one of the tools we use to help clients initiate positions in Futures and Options contracts. If you have any questions, please call us at 212-383-9453.

FUTURES AND OPTIONS TRADING INVOLVES SIGNIFICANT RISK AND IS NOT SUITABLE FOR EVERY INVESTOR. INFORMATION IS OBTAINED FROM SOURCES BELIEVED TO BE RELIABLE, BUT IS IN NO WAY GUARANTEED. PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS.

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About the author

Fred Oltarsh is a Proprietary Trader for a New York City Futures and Options Group specializing in Options Trading. He was an options market-maker on the floor of NYBOT/NYMEX for more than fifteen years and Head of Risk Management at NYBOT/ICE Futures for seven years.

In addition to his Proprietary Trading, Fred has developed the Options Strategy Network a website geared towards Options and Futures Education and Training. The site provides access to Individual and Group Tutoring from Options and Futures experts with significant trading and risk management experience.

Traders putting their money on the line can benefit from the knowledge and trading skills that we convey in the Options Traders' Essential Outline. For more information, please call me at 917-656-1767 or email me at info@optionsstrategynetwork.com.

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