Futures Options

Futures Options 101 1-30-2018

January 29th, 2018 Filed under Future Trading News, Options Trading | Comment (0)

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Voted #1 Blog and #1 Brokerage Services on TraderPlanet for 2016!!

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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 Strategy Description 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 Strategy Description 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

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Futures Options Trading Spread Strategy	Description	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

Futures Options Trading Spread Strategy	Description	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

Trading Weekly Futures Options 8.18.2016

August 17th, 2016 Filed under Future Trading News, Options Trading | Comment (0)

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

1. Market Commentary
2. Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index
3. Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds
4. Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver
5. Futures Economic Reports for Thursday August 18, 2016

Hello Traders,

Greetings!

I promised yesterday a full article about weekly options, so here it is written by my colleague John Thorpe.

While this specific article focuses on mini SP500 weekly options, keep in mind that the information is relevant to other weekly options such as gold, crude oil, bonds, currencies and more!

Enjoy the article here.

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Futures Options Information & Levels 7.13.2016

July 12th, 2016 Filed under Future Trading News, Futures Trading, Options Trading | Comment (0)

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Hello Traders,

Download our FREE report: Options on Futures.

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Options Webinar + Levels for Tomorrow 7.12.2016

July 11th, 2016 Filed under Future Trading News, Options Trading, Trading Webinar | Comment (0)

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.

Hello Traders,

Options 101: Adding Options as a Weapon in Your Trading Arsenal

Join us for a webinar on Jul 12, 2016 at 1:00 PM PDT.

Options on futures can be used in many different ways and as a trader you need to be aware of all the tools you can use!

Join us for a 45 -minute webinar on July 12th at 3:00 P.M., Central Time.
During this presentation, John Thorpe, Senior Broker with Cannon Trading and an ex floor trader will share with you :

Difference between Futures and Futures Options
Option as an Insurance product
Two components that make up the value of an option.
a. Time Value
b. Intrinsic value
Buying Options
Selling Options
Examples of Option Strategy recommendations

And much more…

This Webinar is intended for Traders with no options experience to the beginning student of options on futures, this Webinar is intended to be the first of two Webinars ending with Advanced Option Strategies.

SEATS ARE LIMITED, SO DON’T MISS THIS SPECIAL FREE WEBINAR!

Risk: 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

After registering, you will receive a confirmation email containing information about joining the webinar.

View System Requirements

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Trading Futures Spreads & Options, Reports & Levels 8.22.2014

August 21st, 2014 Filed under Commodity Brokers, Day Trading, Options Trading, Trading Guide | Comment (0)

Hello Traders,

For 2014 I would like to wish all of you discipline and patience in your trading!

Voted Number 1 futures trading blog!

Most of the time I write about day trading, psychology of day trading, techniques etc. but I must say that day-trading is only one way of trading futures.

Over the years I have been exposed and used the following techniques / methods in trading:
buying options
selling options
using options spreads
swing trading using futures
position trading using futures and options
break out trading
and of course day-trading….

All methods can lose money, make money and in between. Some carry higher degree of risk than others, some have better probability of success but losses can be significant….The bottom line is each trader is different and may find a method that he/she feels more comfortable with. I actually wrote an article for SFO magazine a few years back about this subject, called “trading for your blood type” ( email me for a copy if you like).

One method I like for trading futures that can be applied both for day-trading but usually more common for swing/longer term trading is futures spreads. My colleague here at Cannon, Mark O’Brien wrote a good article about it last year which you can access at:

https://www.cannontrading.com/community/trading-futures-spreads

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