Take a Look at the VIX
By John Thorpe, Senior Broker
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By Mark O’Brien, Senior Broker
Zero-day options are normal options — puts and calls — that expire in less than one day, hence the “0DTE” nickname (short for “zero days to expiration”).
In the current high-volatility environment we’re experiencing – one very likely to last awhile – one of the better alternatives to day trading, particularly in stock index futures like the E-mini S&P 500, E-mini Nasdaq, etc., is buying short-term call and put options.
With expirations every day of the week, stock index futures options can be purchased with minimal overall time value and give you a maximum risk coupled with a limitless upside potential.
Especially with markets seemingly hair-triggered to make large daily moves, but with erratic action intraday, the purchase of a limited-risk option provides staying power that no amount of rapid in-and-out trading trying to catch a large move can outperform.
provided by: ForexFactory.com
All times are Eastern Time (New York)
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As of this typing stock index futures and other futures contracts have experienced single-day range moves not seen in years and after being down, finished up:
→ E-mini Dow Jones: UP +3044 points / 8.4%
→ E-mini S&P 500: UP +480 points / 9.5%
→ E-mini Nasdaq: UP +2038 points / 11.71%
→ Crude Oil: UP +320 points / 5.2%
This is a completely different environment of extreme trading volatility than what we were trading in 3-4 weeks ago. Markets are evolving and you must adapt your trading to changing market conditions.
This is where you find out what kind of risk taker you are; brash, overbold, unheeding, or prudent, attentive, discriminating. Everyone possesses these traits – and they influence our decision-making differently in different situations.
In trading, if the historical price moves you’re seeing bring out the daredevil in you, plan to watch your trade results all over the place: up and down more than your everyday swings with the odds increasing your account will hit a wall.
Instead, incorporate patience and prudence. Start your trading by setting daily profit targets and daily loss limits and stick to them. Do that for each trade. These days, be aware of LIMIT moves and understand what happens when the market halts at limit levels.
Find daily price limits for CME Group Agricultural, Cryptocurrency, Energy, Equity Index, Interest Rates, and Metals products: click here.
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provided by: ForexFactory.com
All times are Eastern Time (New York)
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provided by: ForexFactory.com
All times are Eastern Time (New York)
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provided by: ForexFactory.com
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provided by: ForexFactory.com
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Choose your opportunities wisely. Prepare for shocks on the tomorrow FOMC Rate decision but, more importantly, expect a roller coaster during the Chairman’s statement and Q and A 30 minutes to follow.
Today was a subdued trading day for almost all of the high-volume products we trade compared to the past 30 days or so.
Waiting for FOMC rate decision?
Here were today’s top headlines.
Updated: March 18, 2025 7:32 am
US Housing Starts and Building Permits Headline Recap
**US February Housing Starts: +11.2% to 1.501 mln units annualized rate; expected +1.0% to 1.38 mln
**US February Building Permits: -1.2% to 1.456 mln unit annualized rate; expected -2.2% to 1.45 mln
Updated: March 18, 2025 8:17 am
Federal Reserve US Industrial Production & Capacity Utilization Headline Recap
**Federal Reserve February US Industrial Production: +0.7%; expected +0.3%
**Federal Reserve February US Capacity Utilization: +0.5% to 78.2; expected 77.8%
**Federal Reserve January US Industrial Production revised: +0.3%; prior +0.5%
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Volatility alert: The “bands” are expanding, consider reducing trading size? Possibly trading MICROS?
Evaluating your stops and targets to make sure they adjust to volatility?
provided by: ForexFactory.com
All times are Eastern Time (New York)
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See below NQ 15 minute chart for an illustration of the expanded volatility, speed, size of moves etc.
provided by: ForexFactory.com
All times are Eastern Time (New York)
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