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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.

The Return of Traders Should Make for Better Market Rhythm, September 8th, 2010

Posted on by Ilan

“An Odd Rhythm Today After the Long Weekend”

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.

SP 500 Day Trading
SP 500 Day Trading

Continue reading “The Return of Traders Should Make for Better Market Rhythm, September 8th, 2010”

Will Stock Index Futures Upside Momentum Continue?

Posted on by Ilan

“We are Trading Right Against a Major Retracement Level at 1106.50”

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.

SP 500 Day Trading
SP 500 Day Trading

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 are The Deciding Factor for Futures Trading

Posted on by Ilan

“It’s a Wild Ride, so Hang on with Everything You’ve Got!”

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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Non Farm Payroll Report
Non Farm Payroll Report

Continue reading “Unemployment Numbers are The Deciding Factor for Futures Trading”

Stock Index Futures Start September with a Rally, September 2nd 2010

Posted on by Ilan

September Started Out with an Impressive Rally!

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.

E Mini SP 500 Daily Chart
E Mini SP 500 Daily Chart

Continue reading “Stock Index Futures Start September with a Rally, September 2nd 2010”

RISK DISCLOSURE: Past results are not necessarily indicative of future results. The risk of loss in futures trading can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.