Introduction Our previous discussion explored the fundamentals of call options and how they grant you the right (but not the obligation) to buy aluminium at a predetermined price. Now, let’s dive deeper into decision-making: When should you exercise a call option, and when is it better to abandon it? Options are vital tools in hedging […]
Introduction Understanding financial instruments like options and futures is crucial for risk management in commodity trading. In this episode of Hedging with Jorge, we explore the fundamental differences between call options and futures, particularly in aluminium trading. What is a call option? A call option gives the holder the right, but not the obligation, to […]
Aluminium is everywhere; from the cans in our refrigerator to the vehicles on the street. But what is the effect when governments impose tariffs on aluminium imports? The new U.S. tariff of 25% on imported aluminium is going to shake up businesses, and while companies such as Coca-Cola are weighing in on raising prices or […]
Aluminium stands at the core of global manufacturing, along with other sustainable metals, presenting an essential material for everything- from sophisticated aircraft to everyday consumer products we rely on. It’s one of the pillars of today’s industrial revolution, combining innovation in engineering and supply chain advancements. Behind this gleaming metal and the outstanding production figures, […]
When discussing futures contracts, we often focus on outright buying and selling. But what if, instead of purchasing the commodity directly, you had the right rather than the obligation to buy it? That’s where options come into play, offering flexibility in trading strategies. A call option gives the holder the right to buy a commodity […]
Aluminium is a chief raw material that supports the growth of various industries like construction, manufacturing, and transportation. Regrettably, aluminium production emits almost 270 Metric tonnes of carbon into the atmosphere, which contributes to 3% of the world’s direct industrial carbon emissions.1 Increasing carbon emissions has been creating a catastrophic impact on the global environment […]
The aluminium industry is undergoing a revolution powered by AI and automation. From extrusion to smelting and rolling, cutting-edge technologies drive efficiency, sustainability and cost-effectiveness. This blog explores three case studies highlighting how industry leaders leverage digital transformation to optimise operations and reduce environmental impact. Granco Clark: Adaptive Technology in Aluminium Extrusion Granco Clark is […]
Introduction When analysing the world of options trading, it’s crucial to approach it from a speculator’s mindset. Unlike hedging, which focuses on risk management, speculation is taking positions based on market expectations. To put it simply: This approach is fundamental to trading futures and options on the London Metal Exchange (LME), particularly in aluminium markets. […]