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Category: Options Trading

Option trading has two main components – puts and calls. While the call option is used for the option of buying a certain futures contract, the put option is for the option of selling them. Another terminology used in options trading is strike price. This strike price is the price at which the underlying asset is confirmed to be bought or sold when the trader exercises the option.

There are a few other noteworthy items about option trading and each one is important. Take for example the expiration date of the option and the option style, so on and so forth. Once you understand the terminology, you will be able to understand options trading clearly.

One thing to remember about options is that they are comparatively less liquid than futures contracts. For those who analyze the markets thoroughly and regularly, options trading is just a great way of controlling risks. We at Cannon Trading help you understand options trading better and also provide you good advice on options trading. This category archive talks about a number of option trading blogs and articles to give you the most recent update on options.

Options on Futures, NEW Options WEBINAR WEDNESDAY, 2026 Bean to Corn Ratio, Levels; Your 4 Important Need-To-Knows for Trading Futures on November 11th, 2025

Posted on November 10, 2025November 10, 2025 by Cannon Operations

Master Options on Futures — Your Edge Starts Here

At-a-Glance Levels

Instrument	S2	S1	Pivot	R1	R2
Gold (GC) — Dec (GCZ5)	3941.53	3965.37	3997.03	4020.87	4052.53
Silver (SI) — Dec (SIZ5)	46.76	47.31	47.96	48.52	49.17
Crude Oil (CL) — Dec (CLZ5)	57.95	58.76	59.63	60.44	61.31
Dec. Bonds (ZB) — Dec (ZBZ5)	115 31/32	116 20/32	117 1/32	117 22/32	118 3/32

Master Options on Futures — Your Edge Starts Here

options on futures

Unlocking the Power of Options on Futures: A Smarter Way to Trade

Date & Time:

November 12, 2025

11:30 AM PT

Are you ready to trade smarter, not harder? Join CME Group’s Ryan Gorman for an exclusive, fast‑paced webinar that will show you how to harness the unique advantages of Options on Futures—combining the leverage of futures with the defined risk of options.

In just one session, you’ll learn how to:

✅ Understand how options on futures are priced and settled
✅ Apply core strategies like calls and puts for speculation
✅ Generate income with tactics such as covered calls
✅ Hedge your portfolio and express market views with precision

Whether you’re focused on commodities, indices, or currencies, this webinar delivers actionable insights you can use immediately to sharpen your trading edge.

Seats are limited — reserve your spot today and take the next step toward smarter futures trading.

Register Now – Space is Limited!

New Crop 2026 Bean to Corn Ratio

“The new crop bean to corn ratio came under pressure after completing the first upside PriceCount objective. Now the chart has recovered and is poised for a challenge of the August high. At this point, new sustained highs would project a run to the 2.48 area. Fundamentally, ratios higher than 2.5 traditionally favor soybean planting economically, while ratios lower than 2.5 tend to favor corn planting.

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors.

Past performance of actual trades or strategies is not necessarily indicative of future results.

Daily Levels for Nov. 11th, 2025

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Economic Reports

U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

provided by: ForexFactory.com

All times are Central Time ( Chicago)

Find us on Trustpilot

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.

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Second Interest Rate Cut, December Cotton, Levels, Reports; Your 4 Critical Need-To-Knows for Trading Futures on October 30th, 2025

Posted on October 29, 2025October 29, 2025 by Cannon Operations

What You Need to Know Before Trading Futures Tomorrow!

By Mark O’Brien, Senior Broker

At-a-Glance Levels

Instrument	S2	S1	Pivot	R1	R2
Gold (GC) — Dec (GCZ5)	3861.93	3910.07	3978.13	4026.27	4094.33
Silver (SI) — Dec (SIZ5)	46.01	46.69	47.60	48.28	49.19
Crude Oil (CL) — Dec (CLZ5)	59.02	59.67	60.34	60.99	61.66
Dec. Bonds (ZB) — Dec (ZBZ5)	117 7/32	117 20/32	118 13/32	118 26/32	119 19/32

interest

Interest Rates

It wasn’t even apparent during Chair Jerome Powell’s post-announcement news conference what triggered the price jolts in several of the futures markets this afternoon – including a ±50-point decline in the E-mini S&P 500 and a ±200-point decline in the E-mini Nasdaq in the span of eight minutes, or the ±$40 sell-off in gold in the span of two minutes.

Regardless of the cause, they served as the latest real-world examples of why it’s so important for traders of all types to assess the risks of their trades – before you enter into them – and have a plan to manage that risk. Day traders and position traders alike should be aware of important planned events – just like FOMC announcements and press conferences – and anticipate the potential risks to those events (these days it’s wise to include occasions when the U.S. president speaks, considering his ongoing involvement and influence in global trade relations).

These events certainly create opportunities for traders – outsize moves can also result in outsize favorable outcomes – but the most important aspect to trading – is always to manage risk.

General – Interest Rates:

Day 29 of the U.S Government shut-down, now the second-longest on record.

The Federal Reserve cut interest rates by a quarter of a percentage point today – its second consecutive rate cut, lowering the Fed’s benchmark interest rate to a range of 3.75 to 4 percent, its lowest level in three years.

Stock Index Futures:

We’re amidst earning season for the third quarter. Moving into full swing, all eyes were on Microsoft, Google-parent Alphabet and Facebook-owner Meta today– all releasing their latest earnings results after the closing bell.

Tomorrow:

Apple and Amazon

December Cotton

December cotton violated its contract low this month but for now was unable to sustain the break towards the low percentage drawn downside PriceCount objective near 57 cents not shown here for presentation purposes. The new chart has activated upside counts on the correction higher and is quickly approaching the first objective to the 66.27 area. To achieve any additional upside targets, we will first have to break out above the long-term downtrend

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

Daily Levels for Oct. 30th, 2025

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Economic Reports

U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

provided by: ForexFactory.com

All times are Central Time ( Chicago)

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Gov’t Shutdown Continues, Impact on Traders’ Reports, Blackout & Volatility, Levels, Reports; Your 5 Important Must-Knows for Trading Futures on October 22nd, 2025

Posted on October 21, 2025 by Cannon Operations

Govt. Shut Down & Commitment of Traders Reports

By John Thorpe, Senior Broker

At-a-Glance Levels

Instrument	S2	S1	Pivot	R1	R2
Gold (GC) — Dec (GCZ5)	3903	4013.60	4203.60	4314.20	4504.20
Silver (SI) — Dec (SIZ5)	44.35	46.08	48.85	50.57	53.34
Crude Oil (CL) — Nov (CLX5)	55.56	56.49	57.29	58.22	59.02
Dow Jones (YM) — Dec 2025	46578	46865	47100	47387	47622

shutdown

Current 2025 Government Shutdown:

As of October 21, 2025, the ongoing U.S. government shutdown (which began October 1) has suspended COT reports since the last release covering data up to September 23.

Weekly Released Commitment of Traders

Weekly released Commitment of Traders reports from the CFTC provide transparency into the positioning of various trader groups (such as speculators, hedgers, and commercial participants) in futures and options markets.

Risk of Delay/Absence

When these reports are delayed or absent—typically due to events like government shutdowns or external disruptions—it creates a data vacuum that can amplify uncertainty among traders.

Threat of Insight Void

This lack of insight into market sentiment and positioning often leads to increased speculative activity, herding behavior, and potential overreactions, ultimately contributing to higher volatility in futures markets.

Blackout

This blackout has left commodity futures traders “flying blind,” relying on alternative indicators like open interest changes, ETF flows, and futures curve shapes to infer speculative trends. The absence amplifies risks of speculative crowding—where positions build excessively without oversight—potentially leading to sharper price reversals when reports resume.

Volatility

Overall market volatility has shown mixed effects: implied volatility has ticked up slightly due to uncertainty, but in some areas like bonds, it has actually decreased from a lack of data. Agricultural futures have been hit harder, with disruptions to USDA data releases causing supply chain delays and emotional, rumor-driven trading that heightens volatility

Instant Viewing/Download: Commitment of Traders Report – How to Use?

December Oats

December oats met the low percentage fourth downside PriceCount objective to the 2.85 area which suggests we may have come far enough to satisfy this phase of the bear move. At this point, if the chart can extend the recovery with two closes above the 3.015 October high, we would activate upside counts.

Daily Levels for Oct. 22nd, 2025

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Economic Reports

U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

provided by: ForexFactory.com

All times are Central Time ( Chicago)

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Overnight Edge, December Mini Dow, Levels, Reports; Your 4 Important Need-To-Knows for Trading Futures on October 21st, 2025

Posted on October 20, 2025 by Cannon Operations

Where is the Edge?

edge

At-a-Glance Levels

Instrument	S2	S1	Pivot	R1	R2
Gold (GC) — Dec (GCZ5)	4173.40	4285.40	4341.70	4453.70	4510.00
Silver (SI) — Dec (SIZ5)	49.49	50.65	51.24	52.40	52.99
Crude Oil (CL) — Nov (CLX5)	55.32	56.16	56.79	57.63	58.26
Dow Jones (YM) — Dec 2025	46087	46503	46733	47149	47379

Over the past few months, and especially in recent weeks, we’ve seen unusually large overnight moves. Some moves appear random, others reverse quickly, and some are driven by headlines such as tariff news. These dynamics have increased gap risk, reduced overnight liquidity, and produced frequent open-time dislocations.

Common question

Where is the edge?

Short answer

Trade the first 30 minutes and focus on short-term gap-fill or rejection setups.
Use same-day options when you expect a large directional move to limit tail risk and avoid being stopped out only to see the market move in your favor.
Trade spreads when relative strength diverges across instruments (for example, gold vs silver or mini-Dow vs ES).

Extended answer

I want to focus on the practical elements of trading like pre-market context, move behavior, market news correlation, liquidity, options limits, and whether to use mean reversion or momentum. I’ll also want to highlight key parts like risk management, stop placement, and position sizing. Planning should be direct with a simple checklist and no more than six sections. I should also consider using a relevant citation about tariff-related movements, but just one, and make sure it’s only placed where necessary. No framing or extra explanations.

Futures day-trading edge

You find edge by matching a repeatable hypothesis to the current market regime, then executing it with strict risk and execution rules.

Regime diagnosis (what the market is doing now)

Volatility regime: large overnight gaps and erratic premarket prints mean the market is in a news-driven, headline-sensitive volatility regime.
Catalyst profile: moves are often tied to macro headlines and tariff noise; those headlines create directional gaps that either persist into the session or sharply reverse at the open.
Liquidity profile: overnight liquidity is thin and fragmented, increasing slippage and fake outs at the open.

Reliable, tradeable edges you can use

Pre-open directional bias with size filter. Trade opens when overnight gap exceeds a threshold (e.g., 0.5% or X ticks) and pre-market order flow confirms (sustained prints, not one-off sweep).
Use reduced size and wider stops for gaps caused by headline noise.
Fade headline gap into first 30 minutes when structure is weakIf gap lacks follow-through volume and price fails to make a clean microstructure breakout, favor mean reversion to the first-tail or VWAP.
Trend-follow breakouts in high conviction regimeWhen overnight move is accompanied by aligned macro flow (rates, FX, commodities) and volume ramps into the open, follow momentum with a continuation plan.
Volatility arbitrage playsUse options or calendar spreads where available to sell realized volatility after spikes and buy protection around known headline windows.
Session-timing edgeTrade smaller and tighter in the first 15–30 minutes after the open; increase size after the market establishes structure (first clean high/low and confirmation).
Microstructure edge: limit vs market tacticsUse passive limit entries near structural levels and aggressive exits into liquidity. Avoid market entries into thin pre-open auction prints.

Concrete execution rules (checklist)

Pre-market checklist: identify gap size, top 3 headlines, correlated markets (bonds, FX, oil), and pre-open volume trend.
Entry rules: require either structural confirmation (higher high / lower low) or a mean-reversion setup with defined edge-to-risk ratio ≥ 2:1.
Sizing: reduce notional by 25–50% on headline-driven nights; increase only after two clean consecutive edges are realized.
Stops and targets: place stop where edge invalidates (clearly definable price level); scale out at predefined targets; never trade without a stop.
Slippage buffer: add tick buffer to stops and profit targets during thin liquidity opens.

How to test and keep the edge

Backtest regime-specific rules: label historical sessions by overnight gap size and headline events, test mean-reversion vs momentum rules separately.
Forward-test with small capital: run a two-week rolling simulator and log slippage, win rate, and expectancy.
Adaptive rules: codify a volatility threshold that switches you between momentum and fade strategies automatically.

Brief trade plan template

Hypothesis: (e.g., “Overnight tariff headline caused a 0.7% gap that lacks confirmatory volume; first 20 minutes will mean-revert to VWAP.”)
Entry: limit at VWAP + X ticks or on 1-minute reversal candle.
Stop: invalidation beyond the overnight high/low + slippage buffer.
Target: partial at VWAP, final at first structure level.
Size: 50% normal when gap driver = headline; full size only when macro alignment confirmed.

Be systematic: diagnose regime, pick the strategy that historically wins in that regime, enforce execution and risk rules, and iterate from measured data.

Important: Trading commodity futures and options involves a substantial risk of loss.

The recommendations contained in this blog are of opinion only and do not guarantee any profits.

Past performances are not necessarily indicative of future results.

December Mini DOW

The December mini DJIA chart satisfied its second upside PriceCount objective earlier this month and corrected lower. At this point, IF the chart can resume its rally with new sustained highs, the third count would project a possible run to the 52041 area.

Daily Levels for Oct. 21st, 2025

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Economic Reports

U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

provided by: ForexFactory.com

All times are Central Time ( Chicago)

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Less Data amidst Gov’t Shutdown, NEW WEBINAR, Dec. Crude Oil, Levels, Reports; Your 5 Important Must-Knows for Trading Futures the Week of October 20th, 2025

Posted on October 17, 2025 by Cannon Operations

Cannon Futures Weekly Newsletter

In Today’s Issue #1263

The Week Ahead – Govt. Shutdown = Less Data
Futures 101 – Recorded Webinar: Insight Into Futures Spreads
Hot Market of the Week – Dec. Crude Oil
Broker’s Trading System of the Week – Mini SP Swing Trading System
Trading Levels for Next Week
Trading Reports for Next Week

Important Notices: The Week Ahead

By John Thorpe, Senior Broker

data

Traders, much like the Federal Reserve Board, are dependent on data that, during a government shutdown is barely existent. 1 Fed Speaker next week as we move into the Fed Blackout period with 11 days to go before the next Rate announcement. According to the CME Fed watch tool, we have a 99% chance of another .25-point reduction in the bank lending rate to a 3.75-4.00 range.

Overnight margins have increased twice this week for the Precious Metals, Comex Gold and Silver margins are now $20,900 Initial each. When the margin rates get jacked up quickly due to high volatility and price, the trend tends to correct as affordability becomes an issue.

As for earnings reports? Next week we will see the numbers for Tesla, Netflix, Intel and IBM to name but a few.

The on again off again nature of Tariff news has created golden opportunities for breakouts in some markets, rangebound trades in others. The gold market exploded out of its range I have been writing about for months. One note on Gold, a very well-respected analyst is suggesting to cover your long positions in Gold with an oft used phrase “pigs get fat and hogs get slaughtered” as he sees a near term top in the gold market. Watch Crude oil as it broke down and out of its 60-65bb range and has been trading comfortably under the $60.00bbl mark.

The longer the range trade the harder and faster the breakout becomes.

The Continued volatility to come as next week as the markets have not been able to receive Gov’t data due to the ongoing shutdown that our politicians have imposed. Don’t be fooled, this is about politics NOT Policy. Additionally, markets will be reacting to whatever comes out of U.S. Govt leadership relating to conflicts/ cessation, think Russia/Ukraine and what’s happening in international waters off the coast of Venezuela? Trade deals or no trade deals, China, India, Canada and Russia Also, remember that Mexico’s extension will end October 29.

We’ll see you next week! Please enjoy a safe and memorable weekend.

Earnings Next Week:

Mon. Quiet
Tue. Netflix, GE Aerospace, Coca-Cola
Wed. Tesla, IBM
Thu. Intel, T-Mobile
Fri. P&G,

FED SPEECHES: (all times CDT)

Mon. Quiet
Tues. Waller 8:00am, Waller 2:30pm
Wed. Fed Blackout period
Thu. Begins
Fri

Economic Data week:

Mon. with the government shutdown, data will be suspended.

Watch the recorded webinar below where you’ll discover the powerful strategies professional traders use to capitalize on market opportunities while managing risk. Whether you’re a seasoned investor or just starting out, this session will break down the essentials of spread trading, uncover actionable techniques, and show you how to navigate the futures market with confidence. Don’t miss this chance to learn from industry experts and take your trading skills to the next level

thumbnail?url=https%3A%2F%2Fi.ytimg.com%2Fvi%2F0mvKy8 pyWw%2Fhqdefault

Hot Market of the Week

Hot market of the week is provided by QT Market Center, A Swiss army knife charting package that’s not just for Hedgers, Cooperatives and Farmers alike but also for Spread traders, Swing traders and shorter time frame application for intraday traders with a unique proprietary indicator that can be applied to your specific trading needs.

Free Trial Available

Dec. Crude Oil

December crude oil activated downside PriceCount objectives off the June high. The first count projects a possible slide to the $53 area which would require making a new contract low first. A trade below the early May reactionary low would formally negate the remaining unmet counts to the topside.

The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved. It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk. Learn more at www.qtchartoftheday.com

Brokers Trading System of the Week

Abacus Upside ES Trading System

Markets Traded: Mini SP500 ES/EP

System Type: Swing Trading

Risk per Trade: varies

Trading Rules: Partially Disclosed

Suggested Capital: $28,000

Developer Fee per contract: $175 Monthly Subscription

Get Started

Learn More & Detailed Results

Disclaimer The risk of trading can be substantial, and each investor and/or trader must consider whether this is a suitable investment. Past performance is not necessarily indicative of future results.

System Trades Disclosure:

System Description

“System Description” is based upon information obtained from specific system marketing documents, system developers and/or system vendors themselves. While the information is believed to be reliable, we cannot guarantee its completeness or accuracy.

Actual Monthly Performance

The table and charts represent the monthly/quarterly/annual summation of actual trades based on system-specified contract(s) executed through Striker Securities, Inc. using the referenced trading system or system vendor for the stated time period. Commissions and monthly vendor fees are deducted from the tabulation. Results are based on 1 contract. If a client trades 2 contracts his gain or loss is twice as displayed (and so on). This table is presented for information purposes only and is not a solicitation for the referenced system or vendor. The purpose of this information is for clients to compare their brokerage statements to what is displayed on Striker’s site.

Striker as a matter of policy has no ownership with the referenced system or vendor or any other trading system or vendor. Past trade history may not be indicative of future results. The results indicated here may or may not be typical of the performance of this system and, ALTHOUGH WE BELIEVE THIS INFORMATION TO BE ACCURATE, CANNON TRADING COMPANY MAKES NO ENDORSEMENT OF THIS OR ANY SYSTEM NOR WARRANTS ITS PERFORMANCE.

This is not the only trading system that Striker executes for its clients. Potential traders should carefully investigate, evaluate and compare trading systems before investing capital. Some or all trading systems may involve an inappropriate level of risk for potential traders. It is the nature of commodity trading that where there is the opportunity for profit, there is also the risk of loss. In opening an account through CANNON TRADING COMPANY, Customer acknowledges and agrees that he/she will rely solely upon the information that CANNON TRADING COMPANYprovides to you. Thus, all prior third-party materials provided are superseded by the information and disclosures provided by CANNON TRADING COMPANY.

Important Information About this Trading System Analysis

Statistics, tables, charts and other information on trading system monthly performance are based on actual trading unless otherwise specified. Actual dollar and percentage gains/losses experienced by investors would depend on many factors not accounted for in these statistics, including, but not limited to, starting account balances, market behavior, developer fees, incidence of split fills and other variations in order execution, and the duration and extent of individual investor participation in the specified system.

While the information and statistics given are believed to be complete and accurate we cannot guarantee their completeness or accuracy as they results are key punched and subject to human error. Performance information is not the performance of a single account, but a compilation of several accounts over time, and is based on the physical trading ticket. THIS INFORMATION IS PROVIDED FOR EDUCATIONAL/ INFORMATIONAL PURPOSES ONLY AND USED BY CURRENT CLIENTS TO AUDIT THEIR STATEMENTS TO STRIKER SITE. These results are not indicative of, and have no bearing on, any individual results that may be attained by the trading system in the future.

This trading system, like any other, may involve an inappropriate level of risk for prospective investors. THE RISK OF LOSS IN TRADING COMMODITY FUTURES AND OPTIONS CAN BE SUBSTANTIAL AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prior to purchasing or leasing a trading system from this or any other system vendor or investing in a trading system with a registered commodity trading representative, investors need to carefully consider whether such trading is suitable for them in light of their own specific financial condition.

In some cases, futures accounts are subject to substantial charges for commission, management, incentive or advisory fees. It may be necessary for accounts subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets. In addition, one should carefully study the accompanying prospectus, account forms, disclosure documents and/or risk disclosure statements required by the CFTC or NFA, which are provided directly by the system vendor and/or CTA’s.

The information contained in this report is provided with the objective of “standardizing” trading systems measurements, and it is intended for educational /informational purposes only. All information is offered with the understanding that an investor considering purchasing or leasing a system must carry out his/her own research and due diligence in deciding whether to purchase or lease any trading system noted within or without this report.

This report does not constitute a solicitation to purchase or invest in any trading system which may be mentioned herein. CANNON TRADING COMPANY AND STRIKER SECURITES, INC. MAKES NO ENDORSEMENT OF THIS OR ANY OTHER TRADING SYSTEM NOR WARRANTS ITS PERFORMANCE. THIS IS NOT A SOLICITATION TO PURCHASE OR SUBSCRIBE TO ANY TRADING SYSTEM.

Futures Trading Disclaimer:

Transactions in securities futures, commodity and index futures and options on futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, meaning that transactions are heavily “leveraged”. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you.

You may sustain a total loss of initial margin funds and any additional funds deposited with the clearing firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

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Daily Levels for Oct 20th, 2025

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Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:

www.mrci.com

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Price Extremes: Gold, Silver, Crude Oil; December KC Wheat, Levels, Reports; Your 4 Important Must-Knows for Trading Futures on October 16th, 2025

Posted on October 15, 2025 by Cannon Operations

Price Extremes

By Mark O’Brien, Senior Broker

General:

Day 15 of the U.S Government shutdown.

Stock Index Futures:

Dec. stock index futures returned to solid gains late today as markets remained alert over US-China trade tensions and amid hopes for interest rate cuts and strong quarterly earnings results from Wall Street banks. Traders have cemented bets on a rate cut later this month, and odds of a rate cut in December have jumped in recent days to around 96% according to the CME Group FedWatch tool:

Prices Metals:

It’s the broken record metals report. Dec. gold futures rose to new all-time highs today – its 47^th new record of the year – trading up to $4,235.80/ounce intraday.

Alongside gold, Dec. silver rocketed up nearly $2.00/oz. today to set its own all-time record high, trading intraday up to $52.55/ounce. This after yesterday when the contract took out a 45-year-old record closing price of $48.70/ounce, during the time when the Hunt brothers tried to corner the market.

Prices Energies:

November crude oil futures have remained on their lows this week – with a new multi-month intraday low of $58.20/barrel on continued concerns about oversupply and the possible impact on demand of rekindled U.S.-China trade tensions – its fourth day in a row closing below $60/barrel.

Livestock:

Dec. live cattle and Jan. feeder cattle both closed little changed today and within pennies of their own all-time record high closing prices at the close of trading yesterday. Tight supplies and strong feeder markets pushed cash cattle higher and the futures markets followed suit. The supply of cattle has lingered at a near 75-year low, with the closure of the US-Mexico border to Mexican cattle imports further constraining an already tight supply.

December KC Wheat

December KC wheat satisfied its third downside PriceCount objective and reacted with a key reversal higher. It would be normal to get a mean reversion from this level in the form of a consolidation or corrective phase, at least. If the chart can sustain further weakness, we are left with the low percentage fourth count to aim for in the $4.37 area. That we trade down to this level is a realistic target although we have traded that low just 5 years ago.

Daily Levels for Oct. 16th, 2025

Want to feature our updated trading levels on your website? Simply paste a small code, and they’ll update automatically every day!

Click here for quick and easy instructions.

Economic Reports

U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

provided by: ForexFactory.com

All times are Central Time ( Chicago)

Find us on Trustpilot

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Subscribe to our YouTube Channel

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Options Trading, All Time Highs for Gold/Silver, Spread Trading Webinar TOMORROW, Levels, Reports; Your 5 Important Must-Knows for Trading Futures on October 15th, 2025

Posted on October 14, 2025 by Cannon Operations

Volatility – New All Time High on Gold, Silver!

Learn How to hedge utilizing Options

By John Thorpe, Senior Broker

options

Option Hedging 201

This fall, some markets have exceeded upside expectations, Examples include Equities, Livestock, Precious Metals, Coffee and Cocoa.

If you are a long-term investor of Gold, Gold ETF’s Gold Futures and want to or need to protect your investments I put together, for the second time this year, with a few tweaks, Option strategies to protect your downside risk.

You can use these for any market with liquid options.

These are not dollar for dollar coverage strategies, However, I have included pros and cons as I did previously, to help you determine suitability given your personal risk assessment.

Read the rest along with specific examples and charts.

Instant Viewing/Download: Hedging with Options Cheat Sheet

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December Canadian Dollar

The December Canadian Dollar satisfied its second downside PriceCount objective. Fuel is now behind to get a near term reaction from this level in the form of a consolidation or corrective rise. If the chart can sustain further downside, the third count would project a possible slide to the 0.6967 area.

Daily Levels for Oct. 15th, 2025

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Economic Reports

U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

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Volatility Tuesday! All-time Highs on Gold, December Cocoa, Levels, Reports; Your 5 Important Must-Knows for Trading Futures on October 14th, 2025

Posted on October 13, 2025 by Cannon Operations

Volatility – New All Time High on Gold!

volatility

The last few trading sessions we saw tremendous volatility across many markets.

What we witnessed last night and during today’s session reminded me of the markets when COVID first broke out and we saw limit moves across the board.

The moves down Friday on equities, metals and other markets and then the HUGE GAP open yesterday on the Sunday afternoon re-open were a bit SCARY to be honest but also present some large potentials as well.

New All-time highs on gold!!

Here are some ideas to explore during times like these:

1. You don’t have a crystal ball.

To think you can buy an ES contract in this volatility and use a 2 point stop in hopes of making 20 points profit is a very low probability event…you would need to buy it at the PEREFECT time for this to happen. Point is, with higher volatility you need to use WIDER stops to give yourself a chance. That may mean using SMALLER trade size.

2. If you are able to,

share your read with another trader,

it may provide you with a better perspective just by sharing.

3. If you think there is room for a big move or what we call a “runner” –

be prepared to for the pullbacks.

Use multiple time frames to gain a better perspective and hang in there for the big move, if this is what you think can happen.

4. If you have enough risk capital, try to use multiple contracts, example buying 2 rather than 1. Taking profit on the first part of the position will help you relax and look at what the market is really telling you rather than what you would like it to say. It helps reduce both the fear and the greed.

5. “Plan your trade, trade your plan”.

Again, these are just some short pointers, written quickly after today’s session in hopes of helping you when you face a similar situation.

December Cocoa

December cocoa extended its break into a new low where the chart is satisfying its third downside PriceCount objective. It would be normal to get a near term reaction from this level in the form of a consolidation or corrective trade, at least. From here, IF the chart can sustain further weakness with another leg down, we are left with the low percentage fourth count to aim for to the 3647 area, consistent with a test of the contract low.

Daily Levels for Oct. 14th, 2025

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Economic Reports

U.S. government data may be impacted by the shutdown. ‘Tentative’ events are subject to delay, revision, or cancellation

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Day Trading Week! Fed Speakers, December Hogs, Swing Trading, Levels, Reports; Your 6 Important Need-To-Knows for Trading Futures the Week of October 13th, 2025

Posted on October 13, 2025 by Cannon Operations

Cannon Futures Weekly Letter

In Today’s Issue #1262

The Week Ahead – Fed Speakers Galore…
Futures 101 – Podcast: Insight into Day Trading Futures
Hot Market of the Week – Dec. Hogs
Broker’s Trading System of the Week – Mini SP Swing Trading System
Trading Levels for Next Week
Trading Reports for Next Week

Important Notices: The Week Ahead

By John Thorpe, Senior Broker

day trading

Traders, much like the Federal Reserve Board, are dependent on data that, during a government shutdown is barely existent. 17 Fed speakers! The markets are sure to move then, but wait, that’s not all, Fed Chair Powell on Economic Outlook and Monetary Policy.

As for earnings reports? Q3 begins next week! Major Banks report first. (see Below)

The on again off again nature of Tariff news has created golden opportunities for breakouts in some markets, rangebound trades in others. The gold market exploded out of its range I have been writing about for months. Watch Crude oil to see if it stays in its $60.00-$65.00 range and the Dollar index too! The longer the range trade the harder and faster the breakout typically is.

Continued volatility to come as next week all markets will be reacting to whatever comes out of U.S. Govt leadership relating to conflicts cessation and trade deals, China, India, Canada and Russia (looks like the EU is following Trump on this one) The Crude Oil market certainly believes so.. Also, remember that Mexico’s extension will end October 29.

We’ll see you next week! Please enjoy a safe and memorable weekend.

Earnings Next Week:

Mon. Quiet
Tue. JPM , JNJ, WFG, GS, BLK, C
Wed. BAC, MS, ABT,
Thu. SCHW, BK, USB
Fri. AXP,

FED SPEECHES: (all times CDT)

Mon. Paulson 11:55 am,
Tues. Bowman 7:45, Fed Chair Powell 11:20am, Waller 2:25, Collins 2:30
Wed. Bostic 11:10, Miran 11:30, Waller Noon,
Thu. Barkin 7:00am, Barr, Miran, Waller all 8:00am, Bowman 9:00am , Barkin 10:45am, Miran 3:15pm, Kashkari, 5:00pm
Fri. Musalem 11:15

Economic Data week:

Mon. with the government shutdown, data will be suspended.

Day Trading Futures

thumbnail?url=https%3A%2F%2Fi.ytimg.com%2Fvi%2FjEtPhWg91z4%2Fhqdefault

Hot Market of the Week

Free Trial Available

Dec. Hogs

The rally in December hogs stalled out last month and now the chart has activated downside PriceCounts on the correction lower. The first count projects a possible slide to the 81.11 area.”

Brokers Trading System of the Week

ALGOsigmaX E-mini S&P ES

Markets Traded: Mini SP500 ES/EP

System Type: Swing Trading

Risk per Trade: varies

Trading Rules: Partially Disclosed

Suggested Capital: $50,000

Developer Fee per contract: $205 Monthly Subscription

Get Started

Learn More

IMPORTANT RISK DISCLOSURE

Futures trading is complex and carries the risk of substantial losses. It is not suitable for all investors. The ability to withstand losses and to adhere to a particular trading program in spite of trading losses are material points which can adversely affect investor returns.

The returns for trading systems listed throughout this website are hypothetical in that they represent returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real-time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on backadjusted data (backadjusted).

Please read carefully the CFTC required disclaimer regarding hypothetical results below.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT.

IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS.

THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

Please read full disclaimer HERE.

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Daily Levels for Oct 13th, 2025

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Trading Reports for Next Week

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Trade and Risk Management, December Cocoa, Levels, Reports; Your 4 Important Must-Knows for Trading Futures on October 3rd, 2025

Posted on October 2, 2025 by Cannon Operations

Trade and Risk Management

Course Overview 14 minutes

“If you have an approach that makes money, then money management can make the difference between success and failure…I try to be conservative in my risk management. I want to make sure I’ll be around to play tomorrow. Risk control is essential.”

– Monroe Trout, Trout Trading

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December Cocoa

December cocoa resumed its break into a new low. If the chart can sustain further weakness, the third downside PriceCount projects a possible slide to the 5681 area.

Daily Levels for Oct. 3rd, 2025

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Economic Reports

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Master Options on Futures — Your Edge Starts Here

At-a-Glance Levels

Gold (GC)

Silver (SI)

Crude Oil (CL)

Dec. Bonds (ZB)

Master Options on Futures — Your Edge Starts Here

Unlocking the Power of Options on Futures: A Smarter Way to Trade

New Crop 2026 Bean to Corn Ratio

Daily Levels for Nov. 11th, 2025

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Economic Reports

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What You Need to Know Before Trading Futures Tomorrow!

By Mark O’Brien, Senior Broker

At-a-Glance Levels

Gold (GC)

Silver (SI)

Crude Oil (CL)

Dec. Bonds (ZB)

Interest Rates

General – Interest Rates:

Stock Index Futures:

Tomorrow:

December Cotton

Daily Levels for Oct. 30th, 2025

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Economic Reports

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Govt. Shut Down & Commitment of Traders Reports

By John Thorpe, Senior Broker

At-a-Glance Levels

Current 2025 Government Shutdown:

Weekly Released Commitment of Traders

Risk of Delay/Absence

Threat of Insight Void

Blackout

Volatility

December Oats

Daily Levels for Oct. 22nd, 2025

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Economic Reports

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Where is the Edge?

At-a-Glance Levels

Common question

Where is the edge?

Short answer

Extended answer

Futures day-trading edge

Regime diagnosis (what the market is doing now)

Reliable, tradeable edges you can use

Concrete execution rules (checklist)

How to test and keep the edge

Brief trade plan template

December Mini DOW

Daily Levels for Oct. 21st, 2025

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Economic Reports

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Cannon Futures Weekly Newsletter

In Today’s Issue #1263