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.
I wrote yesterday:
“Looks like 1122 should be a decision level based on the chart below.”
Well very similar comments today…… looks like 1122.75 should be decision level if we are to break upside, while 1105.75 to 1109.25 is the support to watch. Chart for your review below.
Continue reading “1122.75 Will be Decision Level to Break Upside, September 15th 2010”
Looks like 1122 should be a decision level based on the chart below.
Wishing all of you a great trading week. For a free 2-week trial to live intraday trade set ups on the mini SP 500, please visit: https://www.cannontrading.com/tools/intraday-futures-trading-signals
Continue reading “1122 on SP 500 Futures Will be Point of Decision, September 14th 2010”
December is now the front month for stock indices, currencies, financials and many other markets.
You should not be trading any September contracts.
Chart of Mini SP 500 for your review below ( December continuous chart)
Have a great weekend!
Continue reading “Futures Stock Indicies Have Officially Rolled Over, September 13th 2010”
Please note that Equity Indices products; TF, ES, NQ, EMD and YM roll on Thursday the 9th at 8:30 am Chicago time from the September 2010 contract to the December 2010 contract. The month code for December is ‘Z’. It is recommended that all new positions be placed in the December contract as of Thursday’s trade date. Please close any open September Currencies positions by the close on Friday the 10th. Should you have any further questions please contact your broker.
Continue reading “Future Stock Indices Due for Rollover, September 10th, 2010”
Please note that Equity Indices products; TF, ES, NQ, EMD and YM roll on Thursday the 9th at 8:30 am Chicago time from the September 2010 contract to the December 2010 contract. The month code for December is ‘Z’. It is recommended that all new positions be placed in the December contract as of Thursday’s trade date. Please close any open September Currencies positions by the close on Friday the 10th. Should you have any further questions please contact your futures broker.
Continue reading “Future Stock Indices Due for Rollover, September 9th, 2010”
Market had some what of an odd rhythm today after the long weekend. We saw big moves in both currencies and bonds. I think that we should see clearer picture tomorrow as more traders will be back after Labor day + we have a few economic reports while today we did not have any reports.
Some levels to watch for tomorrows action from the hourly chart below.
Continue reading “The Return of Traders Should Make for Better Market Rhythm, September 8th, 2010”
I mentioned a couple of days ago that this morning report will determine if we can reach the 1100’s on the SP. Well the answer turned out to be YES. As always in the futures business the current question of what’s next is more important than the previous one….
Well we are trading right against a major retracement level at 1106.50.
As long as pull backs do NOT break 1093, my bias is to the upside. Tuesday should be interesting as we should get an indication if the upside momentum has more legs or not.
Until then, enjoy the long weekend, recharge. Keep in mind the regular session is closed Monday but there is a night session Sunday night and Monday night. More info below.
Holiday schedule at:
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https://www.cannontrading.com/community/newsletter/
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Continue reading “Will Stock Index Futures Upside Momentum Continue?”
Unemployment numbers tomorrow will provide some action ahead of the long weekend.
Holiday schedule at:
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https://www.cannontrading.com/community/newsletter/
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Continue reading “Unemployment Numbers are The Deciding Factor for Futures Trading”
The slew of reports due tomorrow and Friday, will determine if this market will visit 1093 followed by 1106 or if this is the extend of the bounce. If I had to guess based on the momentum, I would say there is a good chance we will visit the 1100 area but of course this is just a guess….
Daily chart of Mini SP 500 for your review.
Continue reading “Stock Index Futures Start September with a Rally, September 2nd 2010”