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Dear Traders,
The move in the energy sector over the weekend with a LARGE GAP open Sunday night, was a good reminder of events that sometimes happen in the commodity world that create very large moves. It is also a good reminder of why there is this thing called initial margin requirements….
Depending on which side you got caught, what happened when Saudi oil fields got attacked followed by crude oil gaping almost $7 higher than the close Friday ( = approx. $7000 per contract, against you or in your favor….) was an excellent reminder of both risks and opportunities that exists in futures trading.
The increased volatility presents some interesting set ups using options and spreads as well as very wide/volatile intra-day ranges for future traders.
Be smart, understand the risk, weigh out the possible scenarios before simply being attracted by “the volatility light”….
Remember,
we are here to assist and more than a few of us brokers were around during very volatile times in the oil markets ( and other markets) and can provide you with
feedback and ideas if interested.
Monthly Crude Oil chart for perspective below:
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
09-17-2019
Economic Reports, source:
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.