Selling Commodity Options & Support Resistance Levels 7.18.2018 - Support & Resistance Levels

Selling Commodity Options & Support Resistance Levels 7.18.2018

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The following is an excellent short read from From our friend Don A. Singletary at  https://www.timefarming.com/

Selling Commodity Options: The Disposition Effect & Trading Psychology

In selling commodity options* or any other type of trading, the disposition effect is the tendency for an investor to take profits too quickly while holding on longer to losing trades.  And holding the losers too long is just another way of saying the trader reverts to hope as a strategy.  This disposition effect is like a trader volunteering for a slow and painful disappearance of funds.  Behavioral studies suggest that the two most influential factors in making trading decisions are genetics and experiences. Oddly, some of the things that are good in life can work against us when trading.
As children, most of us are taught and even encouraged to be hopeful, optimistic, and not to dwell too long on the negative.  Unfortunately, this training can be fatal if adapted into your investment strategy.  Persistence is not a binary trait for humans that we turn either “on” or “off.”  Almost every trader has had the experience of projecting their own hope and persistence on to a losing position.  Our persistence is one end of a sliding scale with something very similar to stupidity at the other end of the spectrum.  Furthermore – almost all of us are too quick to blame ourselves when a trade goes bad –  though most often the circumstances to blame are beyond our control.  To cut losses at a reasonable point often requires us to immediately suspend all hope and optimism, while at the same time having to admit our trade, in spite of our best efforts – just isn’t working. I must learn to fight only the battles I can easily win.  If you can’t learn to exit trades properly without taking it personally, you will get ping-ponged between fear and greed while you are losing your money.  This is both painful and very expensive.
Don A. Singletary is an author of financial articles and books and an educator, After a 25 years as a corporate commodity hedge consultant & corporate trainer specializing in commodity options in risk management plans, he now produces educational corporate and personal training material.
This former broadcaster, writer, and broker – now publishes a newsletter dedicated exclusively to selling commodity options.
* Selling “naked options” involves unlimited risk.
**Seasonal Disclaimer: There are usually underlying fundamental circumstances that occur annually that tend to cause the futures markets to react in a similar directional manner during a certain calendar period of the year. Even if a seasonal tendency occurs in the future, it may not result in a profitable transaction as fees and the timing of the entry and liquidation may impact on the results. No representation is being made that any account h as in the past or will in the future achieve profits utilizing these strategies. No representation is being made that that price patterns will recur in the future.

 

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

07-18-2018

 

Contract September 2018  SP500 #ES_F Nasdaq100  #NQ_F Dow Jones  #YM_F Mini Russell #RTY_F BitCoin Index #XBT_F
Resistance 3 2847.42 7618.00 25340 1711.37 8443.69
Resistance 2 2831.58 7527.00 25241 1703.33 7955.12
Resistance 1 2821.42 7474.50 25170 1696.37 7634.31
Pivot 2805.58 7383.50 25071 1688.33 7145.74
Support 1 2795.42 7331.00 25000 1681.37 6824.93
Support 2 2779.58 7240.00 24901 1673.33 6336.36
Support 3 2769.42 7187.50 24830 1666.37 6015.55
Contract August Gold #GC_F Sept. Silver #SI-F Aug. Crude Oil #CL-F Sept.  Bonds  #ZB_F Sept.  Euro #6E_F
Resistance 3 1259.4 16.14 70.05 145 22/32 1.1872
Resistance 2 1252.2 16.01 69.25 145 17/32 1.1835
Resistance 1 1240.2 15.81 68.64 145  9/32 1.1776
Pivot 1233.0 15.69 67.84 145  4/32 1.1738
Support 1 1221.0 15.49 67.23 144 28/32 1.1679
Support 2 1213.8 15.36 66.43 144 23/32 1.1642
Support 3 1201.8 15.16 65.82 144 15/32 1.1583
Contract Dec.  Corn #ZC_F Sept. Wheat #ZW_F Nov. Beans #ZS_F Dec. SoyMeal #ZM_F Aug. Nat Gas #NG_F
Resistance 3 366.6 514.6 875.08 336.30 2.83
Resistance 2 364.4 509.4 867.42 334.00 2.81
Resistance 1 362.1 503.6 861.33 330.60 2.78
Pivot 359.9 498.4 853.67 328.30 2.75
Support 1 357.6 492.6 847.6 324.9 2.7
Support 2 355.4 487.4 839.92 322.60 2.70
Support 3 353.1 481.6 833.83 319.20 2.66

Economic Reports, source: 

http://app.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.

Posted in: Future Trading News  

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