June 28, 2013 - Issue #692

In This Issue

1. Fourth of July Trading Hours
2. Trading 101 : Options on Futures
3. Economic Calendar

1. Fourth of July Day Holiday Schedule for CME / Globex & ICE Exchanges

CME Group

CME & CBOT Equity Products

Wednesday, July 3

12:15 P.M. CT –Early close

5:00 P.M. CT –Regular open for trade date Friday, July 5*

Thursday, July 4

7:15 A.M.  CT – Regular open – USD - Ibovespa Futures open for trade date Friday, July 5

10:30 A.M.  CT – Trading halt

Order entry, modification and cancellation allowed

5:00 P.M. CT – Halted products resume trading

Friday, July 5

7:15 A.M.  CT – Regular open – USD - Ibovespa Futures

4:15 P.M. CT – Regular close

CME & CBOT Interest Rate & FX Products

Wednesday, July 3

4:00 P.M. CT – Regular close

5:00 P.M. CT – Regular open for trade date Friday, July 5*

Thursday, July 4

12:00 P.M. CT – Trading halt

Order entry, modification and cancellation allowed

5:00 P.M. CT – Halted products resume trading

Friday, July 5

4:00 P.M. CT – Regular close

NYMEX & COMEX Products

Wednesday, July 3

4:15 P.M. CT / 1715 ET – Regular close

5:00 P.M. CT / 1800 P.M. ET – Regular open for trade date Friday, July 5*

Thursday, July 4

12:15 P.M. CT / 1:15 P.M. ET – Trading halt

Order entry, modification, and cancellation allowed

5:00 P.M. CT / 6:00 P.M. ET – Halted products resume trading

Friday, July 5

4:15 P.M. CT / 5:15 P.M. ET – Regular close

CBOT, KCBT, MGEX Grain & Agricultural Products 

Wednesday, July 3

12:00 P.M. CT – Early CBOT & KCBT close

12:15 P.M. CT – Early MGEX Wheat

12:30 P.M. CT – Early CBOT Mini-Sized grain close

12:30 P.M. CT – Early MGEX Indices close

Note: Modified grain pre-opening between 1230/1300 CT – 1600 CT

4:45 P.M. CT - Products will be in a pre-open until their respective opens on Friday, July 5*

Friday, July 5

8:30 A.M.  CT – Grains open

Regular close - Per each product schedule

Other CME Group Products

Wednesday, July 3

12:00 P.M. CT – Early close for Lumber

12:02 P.M. CT – Early close for Lumber Options

12:15 P.M. CT – Early close for Livestock Futures & Options

Regular Close - Per each product schedule:

Exceptions:

Lumber will remain closed until its scheduled opening of 9:00 A.M. CT on Friday

Livestock will remain closed until its scheduled opening 9:05 A.M. CT on Friday

Friday, July 5

Regular close – Per each product schedule

*Dates and times are subject to change.  *Note: Session orders entered on Wednesday after 4:45 P.M. CT / 5:45 P.M. ET are for trade date Friday, July 5 and will continue working until Friday’s close unless otherwise noted.

More info at: http://www.cmegroup.com/tools-information/holiday-calendar/files/2013-4th-of-july-done.pdf

ICE Futures US

U.S. Grain & Oilseed, Equity Products

Wednesday, July 3

13:00 P.M. ET – Early U.S. Grains and Oilseeds close
13:15 P.M. ET – Early Russell Index close

Thursday, July 4

CLOSED – Softs and U.S. Grains and Oilseeds
1:00 P.M. ET – Early USDX & FOREX close
11:30 A.M. ET Early Russell Index close

Friday, July 5 
8:00 A.M. ET – Delayed Cotton No 2 open 
8:00 A.M. ET – Delayed U.S. Grains & Oilseeds open

More info at:

https://www.theice.com/marketdata/Calendar.shtml?calendars=Holiday&expirationEnabled=false&calendars=SpecialTradingHours 

The above sources were compiled from sources believed to be reliable.  Cannon Trading assumes no responsibility for any errors or omissions.  It is meant as an alert to events that may affect trading strategies and is not necessarily complete.  The closing times for certain contracts may have been rescheduled.

2. Buying Options on Futures Contracts: A Guide to Uses and Risks

Although futures contracts have been traded on U.S. exchanges since 1865, options on futures contracts were not introduced until 1982. Initially offered as part of a government pilot program, their success eventually led to widespread use of options on agricultural as well as financial futures contracts. Options on futures contracts can offer a wide and diverse range of potentially attractive investment opportunities. However, options trading is a speculative investment and should be treated as such. Even though the purchase of options on futures contracts involves a limited risk (losses are limited to the costs of purchasing the option), it is nonetheless possible to lose your entire investment in a short period of time. And for investors who sell rather than buy options, there is no limit at all to the size of potential losses. This booklet is designed to provide you with a basic understanding of options on futures contracts—what they are, how they work and the opportunities (and risks) involved in trading them.

The booklet consists of four parts: Part One: The Vocabulary of Options Trading. Options investing has its own language—words or terms you may be unfamiliar with or that have a special meaning when used in connection with options. Part Two: The Arithmetic of Option Premiums. This section describes the major factors that influence option price movements and the all-important relationship between option prices and futures prices. Part Three: The Mechanics of Buying and Writing Options. This section outlines the basic steps involved in buying and writing options, as well as the risks involved. Part Four: A Pre-Investment Checklist. This section lists additional steps you should take before deciding whether to trade options on futures.

Download the 27 page eBooklet published by the NFA titled: Buying Options on Futures Contracts: A Guide to Uses and Risks by filling out the form below.

3. Economic Calendar

Source: Moore Research Center, Inc.

* 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.