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Front month for crude oil and Natural gas is March.
Front month for gold is now April.
Market Strategies using options
1. Bullish Market Strategies
Futures Options Trading
Spread StrategyDescription Reason to Use When to Use Buy a call Strongest bullish option position Loss limited to premium Undervalued option with volatility increasing Sell a put Neutral bullish option position Profit limited to debt Small debit, bullish market Vertical Bull Calls Buy call, sell call of higher strike price Loss limited to debt Small debit, bullish market Vertical Bull Puts Buy put, sell put of higher strike price Loss limited to price difference Large credit, bullish market 2. Bearish Market Strategies
Futures Options Trading
Spread StrategyDescription Reason to Use When to Use Buy a put Strongest bearish option position Loss limited to premium Undervalued option with volatility increasing Sell a call Neutral bearish option position Profit limited to premium Option overvalued, market flat, bearish Vertical Bear Calls Buy at the money put, sell out of the money put Loss limited to debt Small debit, bearish market Vertical Bear Puts Sell call, buy call of higher strike price Loss limited to stroke price difference minus credit Large credit, bearish market
3. Neutral Market Strategies
Futures Options Trading
Spread StrategyDescription Reason to Use When to Use Strangle Sell out of the money put and call Maximum use of time value decay Trading range market with volatility peaking Arbitrage Bull and sell similar simultaneously Profit limited to debt Any time credit received Calendar Sell near month, buy far month, same strike price Near month time value decays faster Small debit, trading range market Butterfly Buy at the money call (put), sell 2 out of the money calls (puts), buy out of the money call (put) Any time credit received Guts Sell in the money put and call Receive large premium Futures Options have time premium and market in trading range Box Buy at the money put, sell out of the money put Small debit, bearish market Ratio Call Buy call, sell calls of higher strike price Neutral, slightly bullish Large credit and difference between stroke price of option bought and sold Conversion Buy futures, buy at the money put, and sell out of the money call Any time credit received
Good Trading!
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Futures Trading Levels
1-30-2018
| Contract March 2018 | SP500 | Nasdaq100 | Dow Jones | Mini Russell | BitCoin Index |
| Resistance 3 | 2898.00 | 7100.42 | 26871 | 1623.60 | 12465.00 |
| Resistance 2 | 2888.25 | 7073.83 | 26778 | 1618.20 | 12120.00 |
| Resistance 1 | 2871.00 | 7033.17 | 26603 | 1608.10 | 11660.00 |
| Pivot | 2861.25 | 7006.58 | 26510 | 1602.70 | 11315.00 |
| Support 1 | 2844.00 | 6965.92 | 26335 | 1592.60 | 10855.00 |
| Support 2 | 2834.25 | 6939.33 | 26242 | 1587.20 | 10510.00 |
| Support 3 | 2817.00 | 6898.67 | 26067 | 1577.10 | 10050.00 |
| Contract | Apr. Gold | Mar. Silver | Mar. Crude Oil | Mar. Bonds | Mar. Euro |
| Resistance 3 | 1368.9 | 17.77 | 67.76 | 150 4/32 | 1.2561 |
| Resistance 2 | 1362.6 | 17.62 | 67.11 | 149 17/32 | 1.2515 |
| Resistance 1 | 1353.5 | 17.39 | 66.28 | 148 25/32 | 1.2466 |
| Pivot | 1347.2 | 17.24 | 65.63 | 148 6/32 | 1.2420 |
| Support 1 | 1338.1 | 17.00 | 64.80 | 147 14/32 | 1.2371 |
| Support 2 | 1331.8 | 16.85 | 64.15 | 146 27/32 | 1.2325 |
| Support 3 | 1322.7 | 16.62 | 63.32 | 146 3/32 | 1.2276 |
| Contract | Mar. Corn | Mar. Wheat | March Beans | Mar. SoyMeal | Mar. Nat Gas |
| Resistance 3 | 362.3 | 456.4 | 1009.75 | 346.13 | 3.38 |
| Resistance 2 | 360.8 | 453.1 | 1004.00 | 343.87 | 3.28 |
| Resistance 1 | 359.8 | 451.2 | 997.75 | 340.63 | 3.23 |
| Pivot | 358.3 | 447.8 | 992.00 | 338.37 | 3.13 |
| Support 1 | 357.3 | 445.9 | 985.8 | 335.1 | 3.1 |
| Support 2 | 355.8 | 442.6 | 980.00 | 332.87 | 2.99 |
| Support 3 | 354.8 | 440.7 | 973.75 | 329.63 | 2.93 |
Economic Reports, source:
http://app.bettertrader.co
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 here in 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 judgement in trading.