June 28th, 2019 - Issue #971
In This Issue
1. Trading 201: 25 Futures & Options Strategies
2. Hot Market Report: Crude Oil Futures - What's next?
3. Economic Calendar
Next Thursday is 4th of July. Markets will have modified trading hours both Wednesday, July 3rd and and Thursday, July 4th.
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1. Trading 201: 25 Futures & Options Strategies
Source: CME Group
Find 25 proven strategies to use in trading options on futures. Examples include butterflies, straddles, back spreads and conversions. Each strategy includes an illustration of the effect of time decay on the total option premium.
Options on futures rank among our most versatile risk management tools, and we offer them on most of our products. Whether you trade options for purposes of hedging or speculating, you can limit your risk to the amount you paid up-front for the option while maintaining your exposure to beneficial price movements.
Dwonload the free booklet
25 Trading Strategies
Cannon Trading respects your privacy and will never give this information to a 3rd party.
2. Hot Market Report: Crude Oil Futures - What's next?
By Matt Kang, Senior BrokerClick on image below to enlarge
Crude Oil is part of the energy sector along with "it's" brothers "RBOB - Unleaded gas" and heating oil and cousin, natural gas. All traded on the NYMEX/GLOBEX exchange.
Ongoing conflict between Iran, Venezuela and the US is likely to affect the price of crude oil. A key fundamental event is the OPEC conference meeting scheduled on next Monday. The unstable and uncertain situation of the fundamentals help the possibilities that the crude oil price will rise according to the current trend, however we expect volatility in both directions as news can make this market turn fast...
Daily chart from this morning, (June 27th 2019).
This chart was prepared using our FREE E-Futures Int'l software, which you can demo for 28 days with real time data.To access a free trial to the ALGOS shown in the chart ( "early trend identifier" included) along with other tools, visit and sign up for a free trial for 21 days with real time data.
On a different note, Crude Oil futures are fastly becoming one of the more popular contracts for day-trading as volatility, speed, price fluctuations are all there for the double edge sword, day-traders love.
Keep in mind that the GLOBEX/NYMEX also offers the mini Crude oil contract which is half the size and may be a good alternative for smaller/ begginer traders.MINI Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $1705 initial, $1550 Maint. ( as of the date of this newsletter)
Point Value: full point = $500 ( Example: 62.80 to 63.80 ). Min fluctuation is 0.25 = $12.5 ( Example: 61.80 to 61.825)
Settlement: Cash Settled commodity one day prior to the Big Contract
Months: Monthly cycle, All Months
Crude Oil Futures Specs
Hours: 5:00 PM to 4:00 PM next day PM Central Time
Margins: $3410 initial, $3100 Maint. ( as of the date of this newsletter)
Point Value: full point = $1000 ( Example: 71.80 to 72.80 ). Min fluctuation is 0.1 = $10 ( Example: 71.80 to 71.81)
Settlement: Physical, deliverable commodity
Months: Monthly cycle, All Months
Weekly Options:YES
Crude Oil is one of my favorite markets for Day Trading because of the intraday voilatility and movements. Be careful, these factors can work against you or in your favor.
Some of the basic fundamentals to keep in mind when you are considering a trade in the crude oil as well as other energies:
1. Longer term view of current market prices
2. Dates and times of important reports. Namely, Tuesday afternoon report (API) and the DOE report on Wednesday mornings at 10:30 Am EST
3. Weather and Seasonality
4. Correlation to US Dollar prices
5. Inflationary prospects
6. Geopolitical Stability
7. U.S. Fiscal and Monetary Stability
Our brokers here at Cannon will be happy to chat about the crude olil market, other energies, other futures, options, futures spreads and much more! Feel free to contact us at any time.
3. Economic Calendar
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 06/27 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - GDP-Third Estimate(Q1) 7:30 AM CDT - GDP Deflator-Third Estimate(Q1) 9:00 AM CDT - Pending Home Sales(May) 9:30 AM CDT - EIA Natural Gas Report 2:00 PM CDT - Quarterly Hogs & Pigs 3:30 PM CDT - Money Supply |
FN: Jul Natural Gas(NYM)
|
| 06/28 Fri |
7:30 AM CDT - Personal Income & Spending(May)
7:30 AM CDT - PCE Price Index(May) 7:30 AM CDT - Core CPE Price Index(May) 9:00 AM CDT - Univ of Mich Consumer Sent-Final(Jun) 11:00 AM CDT - Grain Stocks 11:00 AM CDT - Planted Acreage |
FN: Jul Copper(CMX)
Jul Gold & Silver(CMX) Jul Platinum & Palladium(NYM) Jul Canola(CBT) Jul Wheat(CBT) Jul Corn(CBT) Jul Oats(CBT) Jul Rough Rice(CBT) Jul Soybeans,Soymeal,Soyoil(CBT) LT: Jun 2,5 Year Notes(CBT) Jun Bitcoin(CME) Jun Fed Funds(CME) Jun Live Cattle(CME) Jul RBOB & ULSD(NYM) Jul Sugar-11(ICE) Jun Fed Funds Options(CME) Jul Lumber Options(CME) |
| 07/01 Mon |
9:00 AM CDT - Construction Spending(May)
9:00 AM CDT - ISM Index(Jun) 1:00 PM CDT - Auto & Truck Sales(Jun) 2:00 PM CDT - Cotton System 2:00 PM CDT - Fats & Oils 2:00 PM CDT - Grain Crushings 3:00 PM CDT - Crop Progress |
FN: Jul Orange Juice(ICE)
Jul Sugar-11(ICE) |
| 07/02 Tue |
3:30 PM CDT - API Energy Stocks
|
FN: Jul RBOB & ULSD(NYM)
LT: Jun Butter(CME) Jun Milk(CME) Jun Butter Options(CME) Jun Milk Options(CME) |
| 07/03 Wed |
6:00 AM CDT - MBA Mortgage Index
7:15 AM CDT - ADP Employment Change(Jun) 7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Trade Balance(May) 9:00 AM CDT - Factory Orders(May) 9:00 AM CDT - ISM Non-Manufacturing Index(Jun) 9:30 AM CDT - EIA Petroleum Status Report 2:00 PM CDT - Dairy Products Sales |
|
| 07/04 Thu |
INDEPENDENCE DAY
|
|
| 07/05 Fri |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Unemployment Rate(Jun) 7:30 AM CDT - Ave Workweek & Hourly Earnings(Jun) 7:30 AM CDT - Nonfarm Payrolls(Jun) 9:30 AM CDT - EIA Natural Gas Report 3:30 PM CDT - Money Supply |
LT: Jul Canadian Dollar Options(CME)
Jul Currencies Options(CME) Jul Mx Peso Options(CME) Jul US Dollar Index Options(ICE) Jul Live Cattle Options(CME) Aug Cocoa Options(ICE) |
| 07/08 Mon |
2:00 PM CDT - Consumer Credit(May)
3:00 PM CDT - Crop Progress |
|
| 07/09 Tue |
3:30 PM CDT - API Energy Stocks
|
|
| 07/10 Wed |
6:00 AM CDT - MBA Mortgage Index
9:00 AM CDT - Wholesale Inventories(May) 9:30 AM CDT - EIA Petroleum Status Report 2:00 PM CDT - Dairy Products Sales |
|
| FN=First Notice, OE=Option Expiration, LT=Last Trade | ||
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!
