Cannon Futures Weekly Letter

In Today’s Issue #1299

• The Week Ahead – The bulls & the bears Continue to battle…

• Trading 102: Trading Signals

• Futures 102 – The Daily Briefing – What The Pros Know Before Trading

• Milk Chart & Outlook

• Cannon Edge – Your Futures trading Map for the week ahead!

• Trading Levels for Next Week
• Trading Reports for Next Week

What Futures Traders Should Watch This Week

Options 101

By John Thorpe, Senior Broker

The Week Ahead

Is the smoke clearing in the Mid-East and the markets have a renewed sense of confidence?

We have everything needed to move the market next week as we do expect increased volatility daily from earnings reports and Government data releases. This, in addition to the lasting uncertainty in the Middle East.

The key futures market news for next week’s trading focuses on many earnings reports, of note: Alphabet, Tesla and Intel. A quiet fed speaker week as we are in the Fed Blackout period.

The energy’s, metals, securities and interest rates are swirling in the uncertainty from a lack of resolution in the attempted unwinding of the Iranian nuclear program. The 60-day window to hammer out a deal has now less than three weeks to get done, or will there be none.

Don’t let your guard down just yet, the fog continues, tune into the Sunday evening markets to witness reactions to the weekend news streams, manufactured or true.

  Plan your trade and trade your plan!

Earnings Next Week:

·        Mon. Steel Dynamics, Crown Hldgs, Dominos Pizza,

·        Tue. Schwab, Chubb, Danaher, Marsh & McClennon, General Motors, Northrup Grumman, 3M, DR Horton,

·        Wed. GOOG, Tesla, GE Vernova, Phillip Morris, Texas Instruments, CME

·        Thu. Intel, T-Mobil, Raytheon, Union Pacific, Blackstone, Lockheed Martin, Comcast

·        Fri.   ExxonMobil, AmExpress, Verizon.

Fed Speakers: (all times CDT)

·        Mon. Quiet

·        Tues.  Quiet

·        Wed. Blackout period prior to 28^th-29^th Meeting

·        Thu. Quiet

·        Fri.   Quiet

Econ Data:

·        Mon. CB Leading Index

·        Tue. Redbook, ADP Weekly, API Crude stock change

·        Wed. EIA Crude stock change, Beige Book

·        Thu. Chgo Fed Natl Activity Index, Initial Jobless claims, EIA Nat Gas Stocks, Fed Balance sheet

·        Fri. Building Permits, S&P PMI Flash, New Home Sales, KC Fed MFG. Index, Baker Hughes Oil Rig Count

Options 101(cont.)

The affects of time on the value of an option (Theta)

Key Effects of Time

• Non-Linear Decay: Time decay is not a straight line. It is slow at first, then speeds up. Decay is fastest in the final 30 to 45 days before the option expires.
• Extrinsic Value Loss: An option’s price is made up of intrinsic value (its real-world profit) and extrinsic value (its time value). Time affects only the extrinsic value. By expiration, all extrinsic value equals zero.
• Moneyness Matters: At-the-money (ATM) options (where the strike price matches the futures price) are most sensitive to time decay. Options deep out-of-the-money (OTM) or deep in-the-money (ITM) decay more slowly.

Real-World Example

Imagine you buy a call option on a Crude Oil futures contract that expires in 60 days. The option costs $500.

• Days 1 to 30: The option might only lose $50 of its value because time is on your side.
• Days 31 to 50: The decay speeds up, costing you another $150.
• Days 51 to 60: The final 10 days hit hard. The remaining $300 in time value vanishes rapidly.

How Traders Use Time

• Option Buyers: Time is your enemy. You must be right about the direction and the timing of the futures move. If the market stays flat, the option loses value every day. [
• Option Sellers: Time is your friend. Sellers aim to collect the premium paid by buyers. They profit as the option slowly decays or expires worthless.

Futures options differ from stock options because they derive from an underlying futures contract rather than a stock. You can explore specific contract details and rules on the CME Group Options on Futures guide. https://www.cannontrading.com/tools/25-proven-strategies-for-trading-options

Real Time Trading Signals

Sign up to receive a family of studies along with trading ALGORITHMS you can place on your own charts, your own time frame, and the markets you prefer.

 What You’ll Receive

• Real-time intraday signals delivered directly through Sierra Chart or TradingView – watch a quick video here!
• Clear entries, exits, and trend bias based on objective, rules-driven logic
• Tools designed to help you structure your trading day with more discipline and consistency
• 23-page PDF eBook detailing the logic, concept and trading applications
• The Diamond ALGO and indicators family – applicable to any market at any time frame
• One-on-one remote session to get you started
• Online meeting invitation if you need any help with installation

START NOW – NO CREDIT CARD REQUIRED – START NOW – NO CREDIT CARD REQUIRED

Futures 102: The Daily Briefing by Cannon

Every morning, the world’s biggest banks and macro strategists publish where markets are headed. The rest of the world waits for the headline.

That intelligence stays locked inside trading desks, institutional terminals, and private client portals — accessible only to the few who pay for the privilege, and even they only get what they pay for.

This briefing changes that (100% FREE on Cannon’s website!!). Every morning we scour the open web and aggregate everything that matters — pulling from publicly available sources so you never have to — and distill it into one clear, readable edition you can get through before your first coffee is finished.

No terminals. No subscriptions. No private portals. Just everything the market is saying, gathered in one place, every morning before the bell.

Read the Latest Briefing HERE and make sure to Bookmark this page!

 August Class III Milk

August Milk gapped higher yesterday and will activate upside PriceCount objectives pending a second close above 17.30 today. The first count projects a possible rally to the 18.22 area.

The PriceCount study is a tool that can help to project the distance of a move in price. The counts are not intended to be an ‘exact’ science but rather offer a target area for the four objectives which are based off the first leg of a move with each subsequent count having a smaller percentage of being achieved.

It is normal for the chart to react by correcting or consolidating at an objective and then either resuming its move or reversing trend. Best utilized in conjunction with other technical tools, PriceCounts offer one more way to analyze charts and help to manage your positions and risk.

Learn more at www.qtchartoftheday.com

Trading in futures, options, securities, derivatives or OTC products entails significant risks which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies is not necessarily indicative of future results.

FREE TRIAL TO QT MARKET Center – Access to analysis, tools, news & Much more!

Highly recommended for HEDGERS!

Cannon Edge — Your Daily Futures Insight for the Next Trading Day! Cannon Edge for July 20th, 2026

Cannon Edge is our new daily feature designed to give traders a fast, actionable overview of key futures markets. Each post delivers:

• Current price and daily % change
• 30‑day and 52‑week highs/lows
• PROPRIETARY Short‑term and long‑term trend signals
• Coverage across equity indices, metals, energies, currencies, and ags

Whether you’re scanning for breakout setups, trend reversals, or just staying informed — Cannon Edge puts the data in your hands before the open.

Built for speed. Backed by insight. Powered by CQG.

Daily Levels for July 20th, 2026

Trading Reports for Next Week

First Notice (FN), Last trading (LT) Days for the Week:

www.mrci.com

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.

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