Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
Many clients have asked me “The moves are so wild, I am almost always getting stopped out unless I have deep reserves or willing to take large stops”
Not that there is an exact answer to the situation but two things come to mind:
- Reduce trading size and be extra picky on entry levels
- Switch to the MICROS
- Use weekly options….
My colleague John Thorpe wrote the following article a few months back and it provides excellent insight on possible uses of weekly options, at times as an alternative for day trading/ stops:
Weekly Mini S&P Option Contracts
There are 100’s of indicators available to traders to assist with decision making that can be applied to technical analysis, which is precisely the reason to utilize a sound and inexpensive weekly ES strategy to compliment a day trading strategy.
There Are Two Main Uses For The Weekly Options
- As a hedge, no need for stops
- As a pure speculation. A relatively inexpensive way to speculate on market direction in a time frame that can be for minutes, hours or a few days without the need to use stops.
Briefly, the definition of an option contract from the National Futures Association
is: An investment vehicle which gives the option buyer the right—but not the obligation—to buy or sell a particular futures contract at a stated price at the specified expiration date. There are two separate and distinct types of options: calls and puts. These weekly options are European Style, Exercisable to the nearest futures contract at 3pm Central time on Friday. If in the money by any amount, the exercise is automatic. Read the rest…..
Trading Futures, Options on Futures, Gold 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 when it comes to Futures Trading.
Futures Trading Levels
Did you know?
Economic Reports, source:
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.
Posted in: Future Trading News