Mini NASDAQ 100 chart review along with article on selling options premium
In This Issue
1. Trading 202: Futures Options Writing ( Collecting Premium)
2. Hot Market Report: NASDAQ 100 Testing Support Levels
3. Economic Calendar
Have you ever wondered who sells the futures options that most people buy? These people are known as the option writers/sellers. Their sole objective is to collect the premium paid by the option buyer. Option writing can also be used for hedging purposes and reducing risk. An option writer has the exact opposite to gain as the option buyer. The writer has unlimited risk and a limited profit potential, which is the premium of the option minus commissions. When writing naked futures options your risk is unlimited, without the use of stops. This is why we recommend exiting positions once a market trades through an area you perceived as strong support or resistance. So why would anyone want to write an option? Here are a few reasons:
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This week’s highlighted Market is mini NASDAQ 100 futures.Part of the stock index family that includes mini SP 500, mini Russell, mini Dow, Mid cap, Nikkei and a few more. Most traded on the CME/CBOT/GLOBEX exchanges.
Source: Moore Research Center, Inc.
Date | Reports | Expiration & Notice Dates |
---|---|---|
05/31 Fri |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Personal Income & Spending(Apr) 7:30 AM CDT - PCE Price Index(Apr) 7:30 AM CDT - Core PCE Price Index(Apr) 9:00 AM CDT - Univ of Mich Consumer Sent-Final(May) |
FN: Jun 2,5,10 Year Notes(CBT)
Jun Bonds(CBT) Jun Copper(CMX) Jun Gold & Silver(CMX) Jun Platinum & Palladium(NYM) LT: May Bitcoin(CME) May Fed Funds(CME) Jun RBOB & ULSD(NYM) May Fed Funds Options(CME) Jun Lumber Options(CME) |
06/03 Mon |
9:00 AM CDT - Construction Spending(Apr)
9:00 AM CDT - ISM Manufacturing Index(May) 2:00 PM CDT - Cotton System 2:00 PM CDT - Fats & Oils 2:00 PM CDT - Grain Crushings |
|
06/04 Tue |
9:00 AM CDT - Factory Orders(Apr)
3:30 PM CDT - API Energy Stocks |
FN: Jun RBOB & ULSD(NYM)
LT: May Butter(CME) May Milk(CME) May Butter Options(CME) May Milk Options(CME) |
06/05 Wed |
6:00 AM CDT - MBA Mortgage Applications Index
7:15 AM CDT - ADP Employment Change(May) 9:00 AM CDT - ISM Non-Manufacturing Index(May) 9:30 AM CDT - EIA Petroleum Status Report 1:00 PM CDT - Fed's Beige Book(Jun) 2:00 PM CDT - Dairy Products Sales |
|
06/06 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Productivity-Rev(Q1) 7:30 AM CDT - Unit Labor Costs-Rev(Q1) 7:30 AM CDT - Trade Balance(Apr) 9:30 AM CDT - EIA Natural Gas Report 3:30 PM CDT - Money Supply |
|
06/07 Fri |
7:30 AM CDT - Nonfarm Payrolls(May)
7:30 AM CDT - Ave Hourly Earnings & Workweek(May) 7:30 AM CDT - Unemployment Rate(May) 9:00 AM CDT - Wholesale Inventories(Apr) 2:00 PM CDT - Consumer Credit(Apr) |
LT: Jun Canadian Dollar Options(CME)
Jun Currencies Options(CME) Jun Live Cattle Options(CME) Jun Mx Peso Options(CME) Jun US Dollar Index Options(ICE) Jul Cocoa Options(ICE) |
06/10 Mon |
|
FN: Jun Live Cattle(CME)
LT: Jul Sugar-16(ICE) |
06/11 Tue |
7:30 AM CDT - Core PPI & PPI(May)
11:00 AM CDT - WASDE Report & Crop Production 3:30 PM CDT - API Energy Stocks |
FN: Jul Sugar-16(ICE)
|
06/12 Wed |
6:00 AM CDT - MBA Mortgage Applications Index
7:30 AM CDT - Core CPI & CPI(May) 9:30 AM CDT - EIA Petroleum Status Report 1:00 PM CDT - Treasury Budget(May) 2:00 PM CDT - Dairy Products Sales |
|
06/13 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 7:30 AM CDT - Export(ex-ag) & Import(ex-oil) Prices(May) 9:30 AM CDT - EIA Natural Gas Report 3:30 PM CDT - Money Supply |
LT: Jun Nikkei(CME)
Jun Nikkei Options(CME) Jul Coffee Options(ICE) |
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!