{"id":10370,"date":"2015-09-15T12:14:06","date_gmt":"2015-09-15T20:14:06","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=10370"},"modified":"2015-11-29T23:36:00","modified_gmt":"2015-11-30T07:36:00","slug":"fomc-week-economic-reports-9-16-2015","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/fomc-week-economic-reports-9-16-2015\/","title":{"rendered":"FOMC Week & Economic Reports 9.16.2015"},"content":{"rendered":"

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.
\n<\/strong>
\n\"Like<\/a>\"Follow<\/a>\"View<\/a>\"Find<\/a>\"Cannon<\/a>\"Find<\/a><\/p>\n

1.\u00a0Market Commentary<\/a><\/strong>
\n2.\u00a0Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index<\/a><\/strong>
\n3.\u00a0Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds<\/a><\/strong>
\n4.\u00a0Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver<\/a><\/strong>
\n5.\u00a0Futures Economic Reports for Wednesday September 16, 2015<\/a><\/strong>
\n<\/a><\/p>\n

 <\/p>\n

Hello Traders,<\/strong><\/p>\n

For 2015 I would like to wish all of you discipline and patience in your trading!<\/em><\/p>\n

Voted #1 futures trading blog!<\/a><\/div>\n
\n

Big FOMC this week! Meeting takes place tomorrow and Thursday with much anticipated announcement and language on Thursday, 2 PM EST.<\/p>\n

Futures Options 101:<\/strong><\/p>\n

Market Strategies<\/p>\n

1.\u00a0Bullish Market Strategies<\/strong><\/p>\n

\n\n\n\n\n\n\n\n
Futures Options Trading
\nSpread Strategy<\/th>\n		Description<\/th>\nReason to Use<\/th>\nWhen to Use<\/th>\n<\/tr>\n
Buy a call<\/td>\nStrongest bullish option position<\/td>\nLoss limited to premium<\/td>\nUndervalued option with volatility increasing<\/td>\n<\/tr>\n
Sell a put<\/td>\nNeutral bullish option position<\/td>\nProfit limited to debt<\/td>\nSmall debit, bullish market<\/td>\n<\/tr>\n
Vertical Bull Calls<\/td>\nBuy call, sell call of higher strike price<\/td>\nLoss limited to debt<\/td>\nSmall debit, bullish market<\/td>\n<\/tr>\n
Vertical Bull Puts<\/td>\nBuy put, sell put of higher strike price<\/td>\nLoss limited to price difference<\/td>\nLarge credit, bullish market<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

2.\u00a0Bearish Market Strategies<\/strong><\/p>\n

\n\n\n\n\n\n\n\n
Futures Options Trading
\nSpread Strategy<\/th>\n		Description<\/th>\nReason to Use<\/th>\nWhen to Use<\/th>\n<\/tr>\n
Buy a put<\/td>\nStrongest bearish option position<\/td>\nLoss limited to premium<\/td>\nUndervalued option with volatility increasing<\/td>\n<\/tr>\n
Sell a call<\/td>\nNeutral bearish option position<\/td>\nProfit limited to premium<\/td>\nOption overvalued, market flat, bearish<\/td>\n<\/tr>\n
Vertical Bear Calls<\/td>\nBuy at the money put, sell out of the money put<\/td>\nLoss limited to debt<\/td>\nSmall debit, bearish market<\/td>\n<\/tr>\n
Vertical Bear Puts<\/td>\nSell call, buy call of higher strike price<\/td>\nLoss limited to stroke price difference minus credit<\/td>\nLarge credit, bearish market<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

3.\u00a0Neutral Market Strategies<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n
Futures Options Trading
\nSpread Strategy<\/th>\n		Description<\/th>\nReason to Use<\/th>\nWhen to Use<\/th>\n<\/tr>\n
Strangle<\/td>\nSell out of the money put and call<\/td>\nMaximum use of time value decay<\/td>\nTrading range market with volatility peaking<\/td>\n<\/tr>\n
Arbitrage<\/td>\nBull and sell similar simultaneously<\/td>\nProfit limited to debt<\/td>\nAny time credit received<\/td>\n<\/tr>\n
Calendar<\/td>\nSell near month, buy far month, same strike price<\/td>\nNear month time value decays faster<\/td>\nSmall debit, trading range market<\/td>\n<\/tr>\n
Butterfly<\/td>\nBuy at the money call (put), sell 2 out of the money calls (puts), buy out of the money call (put)<\/td>\n<\/td>\nAny time credit received<\/td>\n<\/tr>\n
Guts<\/td>\nSell in the money put and call<\/td>\nReceive large premium<\/td>\nFutures Options have time premium and market in trading range<\/td>\n<\/tr>\n
Box<\/td>\nBuy at the money put, sell out of the money put<\/td>\n<\/td>\nSmall debit, bearish market<\/td>\n<\/tr>\n
Ratio Call<\/td>\nBuy call, sell calls of higher strike price<\/td>\nNeutral, slightly bullish<\/td>\nLarge credit and difference between stroke price of option bought and sold<\/td>\n<\/tr>\n
Conversion<\/td>\nBuy futures, buy at the money put, and sell out of the money call<\/td>\n<\/td>\nAny time credit received<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Futures Options Writing<\/strong><\/p>\n

Have you ever wondered who sells the futures options that most people buy? These people are known as the option writers\/sellers. Their sole objective is to collect the premium paid by the option buyer. Option writing can also be used for hedging purposes and reducing risk. An option writer has the exact opposite to gain as the option buyer. The writer has unlimited risk and a limited profit potential, which is the premium of the option minus commissions. When writing naked futures options<\/strong> your risk is unlimited, without the use of stops. This is why we recommend exiting positions once a market trades through an area you perceived as strong support or resistance<\/a>. So why would anyone want to write an option? Here are a few reasons:<\/div>\n
<\/div>\n
    \n
  1. Most futures options expire worthless and out of the money. Therefore, the option writer is collecting the premium the option buyer paid.<\/li>\n
  2. There are three ways to win as an option writer. A market can go in the direction you thought, it can trade sideways and in a channel, or it can even go slowly against you but not through your strike price. The advantage is time decay.<\/li>\n
  3. The writer believes the futures contract will not reach a certain strike price by the expiration date of the option. This is known as naked option selling.<\/li>\n
  4. To hedge against a futures position. For example: someone who goes long cocoa at 850 can write a 900 strike price call option with about one month of time until option expiration. This allows you to collect the premium of the call option if cocoa settles below 900, based on option expiration. It also allows you to make a profit on the actual futures contract between 851 and 900. This strategy also lowers your margin on the trade and should cocoa continue lower to 800, you at least collect some premium on the option you wrote. Risk lies if cocoa continues to decline because you only collect a certain amount of premium and the futures contract has unlimited risk the lower it goes.<\/li>\n<\/ol>\n
    <\/div>\n
    Cannon Trading Company Inc.<\/a> believes in writing options on futures<\/strong>, but advises against doing it without the advice and expertise of a knowledgeable broker or specialist. Be strict when choosing which futures options to write and don’t believe in writing options on futures as your only strategy. Using the same strategy every month on a single market is bound to burn you one month, because you end up writing options on futures when you shouldn’t. Cannon Trading Co. Inc. believes you should treat option writing just like\u00a0futures trading<\/a>. We believe you should stay with the major trend when writing futures options, with rare exceptions. Use market pullbacks to support or resistance as opportunities to enter with the trend, by writing futures options which best fit into your objectives.<\/div>\n
    <\/div>\n
    <\/div>\n
    Volatility is another important factor when determining which options on futures to write, it’s generally better to sell over valued futures options then under valued futures options. Remember not to get caught up with only volatility, because options on futures with high volatility could always get higher. The bottom line is, pick the general market direction to become successful over the long-term. We also believe in using stops based on futures settlements, not based on the value of the option. If a market settles above or below an area you believed it shouldn’t and the trend appears to have reversed based on the charts, it’s probably a good time to exit your positions. We can help you understand the risks and rewards involved, as well as how to react to certain situations, i.e.,: if\/then trading scenarios. We can either assist your option writing style or recommend trades and strategies we believe are appropriate, using the above guidelines.<\/div>\n

    Option Buying & Spreads<\/strong><\/p>\n

    Most futures options<\/strong> expire worthless and out of the money, therefore most people lose when buying options on futures. Cannon Trading believes there is still opportunity in buying , but you must be very patient and selective. We believe buying futures options just because a market is extremely high or low, known as “fishing for options” is a big mistake. Refer to the guidelines on our “Trading Commandments” before purchasing any futures options. Historic volatility, technical analysis, the trend and all other significant factors should all be analyzed to increase your probability of profit. All full-service accounts will receive these studies, opinions and recommendations upon request. Cannon Trading Company’s “Trading Commandments” can be used as a guideline to assist you in the process and decision making of selecting the right market and futures options to purchase.<\/p>\n

    A common strategy we implement involves the writing and buying of futures options at the same time<\/strong>, known as bull call or bear put spreads. Ratio and calendar spreads are also used and are recommended at times. Please do not hesitate to call for help with any of these strategies or explanations. Here are a few examples we use often:<\/div>\n
    <\/div>\n
      \n
    1. If coffee is trading at 84, we can buy 1 coffee 100 call and write 2 135 calls with the same expiration dates and 30 days of time until expiration. This would be in anticipation of coffee trending higher, but not above 135 in 30 days. We’d be collecting the same amount of premium as we’re buying, so even if coffee continued lower we’d lose nothing. Our highest profit would be attained at 135 based on options on futures expiration. To determine risk we’d take the difference between 135 and 100, which is 35 points and divide it by two, because we sold two calls for every one purchased. You’d then add the 17.5 points to 135 and this would give you the approximate break-even point based on option expiration. Risk lies if coffee rises dramatically or settles over 152.50, based on expiration.<\/li>\n
    2. A typical calendar spread strategy we use often would be to write 1 option with about 25 days left until expiration and buy 1 with 60 days left. Example: If coffee was trading at 84 and we thought prices might be heading slowly higher. We can write 1 130 coffee call with less time and buy 1 coffee 130 call with more time in the anticipation that the market will trend higher, but not above the 130 strike before the first options on futures expiration. Some additional risk here lies in the difference between the two contract months. The objective is, if coffee trades higher over the next month but not above the 130 strike price, we’d collect the premium of the option we sold by letting it expire worthless. In addition, the option we purchased may also profit if coffee rises higher, but it may lose some value due to time decay if coffee doesn’t rally enough.<\/li>\n<\/ol>\n<\/div>\n
      *Note:<\/strong>\u00a0Some futures options trade based on different futures contract months and should always be considered in your trading. Don’t hesitate to call for help with any of these strategies or explanations. Remember, the key is still going to be picking the general market direction correct. Therefore, you must analyze and study each market situation with several different trading scenarios and determine which one best suits your risk parameters.<\/div>\n
      <\/div>\n
      \n
      Download free PDF booklet with 25 pages of options and futures information and strategies instantly<\/a>!<\/div>\n
      <\/div>\n
      \n

      <\/b><\/b>Did you know Cannon offers FOREX trading including the\u00a0MT4 platform<\/a>?<\/b> Check out our\u00a0Trading Systems<\/a>\/ALGO Trading<\/a>\u00a0and\u00a0Managed Accounts\u00a0section<\/a>!<\/p>\n

      Many ways to trade any market, many ways to lose money in any market and only very few ways to lock in gains.\u00a0<\/b>If you need help creating a trading plan,\u00a0visit our broker assist services.<\/a>
      \n<\/b><\/div>\n
      <\/div>\n<\/div>\n<\/div>\n

      GOOD TRADING<\/strong><\/p>\n

      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.<\/p>\n

      If you like Our Futures Trading Daily Support and Resistance Levels, Please share!<\/strong><\/p>\n

      Futures Trading Levels<\/a><\/strong><\/p>\n

      \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
      Contract Dec. 2015<\/td>\nSP500<\/td>\nNasdaq100<\/td>\nDow Jones<\/td>\nMini Russell<\/td>\nDollar Index<\/td>\n<\/tr>\n
      Resistance 3<\/td>\n2021.83<\/td>\n4470.00<\/td>\n16976<\/td>\n1188.33<\/td>\n96.56<\/td>\n<\/tr>\n
      Resistance 2<\/td>\n1997.42<\/td>\n4417.00<\/td>\n16758<\/td>\n1175.17<\/td>\n96.21<\/td>\n<\/tr>\n
      Resistance 1<\/td>\n1984.08<\/td>\n4386.00<\/td>\n16640<\/td>\n1167.83<\/td>\n96.00<\/td>\n<\/tr>\n
      Pivot<\/td>\n1959.67<\/td>\n4333.00<\/td>\n16422<\/td>\n1154.67<\/td>\n95.64<\/td>\n<\/tr>\n
      Support 1<\/td>\n1946.33<\/td>\n4302.00<\/td>\n16304<\/td>\n1147.33<\/td>\n95.43<\/td>\n<\/tr>\n
      Support 2<\/td>\n1921.92<\/td>\n4249.00<\/td>\n16086<\/td>\n1134.17<\/td>\n95.08<\/td>\n<\/tr>\n
      Support 3<\/td>\n1908.58<\/td>\n4218.00<\/td>\n15968<\/td>\n1126.83<\/td>\n94.87<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
      Contract<\/td>\nDec. Gold<\/td>\nDec. Silver<\/td>\nOct. Crude Oil<\/td>\nDec. Bonds<\/td>\nDec. \u00a0 Euro<\/td>\n<\/tr>\n
      Resistance 3<\/td>\n1115.1<\/td>\n14.62<\/td>\n46.27<\/td>\n157 11\/32<\/td>\n1.1402<\/td>\n<\/tr>\n
      Resistance 2<\/td>\n1111.8<\/td>\n14.52<\/td>\n45.65<\/td>\n156 11\/32<\/td>\n1.1375<\/td>\n<\/tr>\n
      Resistance 1<\/td>\n1108.1<\/td>\n14.45<\/td>\n45.16<\/td>\n154 13\/32<\/td>\n1.1330<\/td>\n<\/tr>\n
      Pivot<\/td>\n1104.8<\/td>\n14.35<\/td>\n44.54<\/td>\n153 13\/32<\/td>\n1.1303<\/td>\n<\/tr>\n
      Support 1<\/td>\n1101.1<\/td>\n14.28<\/td>\n44.05<\/td>\n151 15\/32<\/td>\n1.1258<\/td>\n<\/tr>\n
      Support 2<\/td>\n1097.8<\/td>\n14.18<\/td>\n43.43<\/td>\n150 15\/32<\/td>\n1.1231<\/td>\n<\/tr>\n
      Support 3<\/td>\n1094.1<\/td>\n14.11<\/td>\n42.94<\/td>\n148 17\/32<\/td>\n1.1186<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
      Contract<\/td>\nDec. Corn<\/td>\nDec. Wheat<\/td>\nNov Beans<\/td>\nDec. SoyMeal<\/td>\nOct. Nat Gas<\/td>\n<\/tr>\n
      Resistance 3<\/td>\n400.3<\/td>\n512.3<\/td>\n906.17<\/td>\n325.37<\/td>\n2.85<\/td>\n<\/tr>\n
      Resistance 2<\/td>\n397.7<\/td>\n507.8<\/td>\n900.33<\/td>\n322.13<\/td>\n2.82<\/td>\n<\/tr>\n
      Resistance 1<\/td>\n394.1<\/td>\n501.3<\/td>\n894.67<\/td>\n319.77<\/td>\n2.77<\/td>\n<\/tr>\n
      Pivot<\/td>\n391.4<\/td>\n496.8<\/td>\n888.83<\/td>\n316.53<\/td>\n2.75<\/td>\n<\/tr>\n
      Support 1<\/td>\n387.8<\/td>\n490.3<\/td>\n883.2<\/td>\n314.2<\/td>\n2.7<\/td>\n<\/tr>\n
      Support 2<\/td>\n385.2<\/td>\n485.8<\/td>\n877.33<\/td>\n310.93<\/td>\n2.67<\/td>\n<\/tr>\n
      Support 3<\/td>\n381.6<\/td>\n479.3<\/td>\n871.67<\/td>\n308.57<\/td>\n2.63<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
      <\/div>\n
      Economic Reports<\/strong><\/div>\n

      source:http:\/\/www.forexfactory.com\/calendar.php<\/a><\/h3>\n

      All times are Eastern time Zone (EST<\/a>)<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
      Date<\/th>\n4:08pm<\/a><\/th>\nCurrency<\/th>\nImpact<\/th>\n<\/th>\nDetail<\/th>\nActual<\/th>\nForecast<\/th>\nPrevious<\/th>\nGraph<\/th>\n<\/tr>\n<\/thead>\n
      <\/td>\n<\/tr>\n
      WedSep 16<\/td>\n<\/a>\u00a05:00am<\/td>\nEUR<\/td>\n<\/td>\nFinal CPI y\/y<\/td>\n<\/td>\n<\/td>\n0.2%<\/td>\n0.2%<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\nEUR<\/td>\n<\/td>\nFinal Core CPI y\/y<\/td>\n<\/td>\n<\/td>\n1.0%<\/td>\n1.0%<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\nTentative<\/td>\nEUR<\/td>\n<\/td>\nGerman 30-y Bond Auction<\/td>\n<\/td>\n<\/td>\n<\/td>\n1.18|1.1<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\n8:30am<\/td>\nUSD<\/td>\n<\/td>\nCPI m\/m<\/td>\n<\/td>\n<\/td>\n0.0%<\/td>\n0.1%<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\n<\/td>\nUSD<\/td>\n<\/td>\nCore CPI m\/m<\/td>\n<\/td>\n<\/td>\n0.1%<\/td>\n0.1%<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\n10:00am<\/td>\nUSD<\/td>\n<\/td>\nNAHB Housing Market Index<\/td>\n<\/td>\n<\/td>\n61<\/td>\n61<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\n10:30am<\/td>\nUSD<\/td>\n<\/td>\nCrude Oil Inventories<\/td>\n<\/td>\n<\/td>\n0.7M<\/td>\n2.6M<\/td>\n<\/td>\n<\/tr>\n
      <\/td>\n4:00pm<\/td>\nUSD<\/td>\n<\/td>\nTIC Long-Term Purchases<\/td>\n<\/td>\n<\/td>\n<\/td>\n103.1B<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

      This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc<\/a>. 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 judgment in trading.<\/p>\n

       <\/p>\n","protected":false},"excerpt":{"rendered":"

      Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed. 1.\u00a0Market Commentary 2.\u00a0Futures Support and Resistance Levels – S&P, Nasdaq, Dow Jones, Russell 2000, Dollar Index 3.\u00a0Commodities Support and Resistance Levels – Gold, Euro, Crude Oil, T-Bonds 4.\u00a0Commodities Support and Resistance Levels – Corn, Wheat, Beans, Silver 5.\u00a0Futures Economic Reports for Wednesday […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76,230,67,61,233],"tags":[137,810,199,880,881],"class_list":["post-10370","post","type-post","status-publish","format-standard","hentry","category-commodity-trading-2","category-day-trading-2","category-future-trading-news","category-futures-trading-2","category-options-trading-2","tag-futures-options-trading","tag-futures-trading-e-book","tag-futures-trading-strategies","tag-options-trading-e-book","tag-options-trading-strategies"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/10370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=10370"}],"version-history":[{"count":8,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/10370\/revisions"}],"predecessor-version":[{"id":10372,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/10370\/revisions\/10372"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=10370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=10370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=10370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}