{"id":10858,"date":"2016-02-03T13:15:37","date_gmt":"2016-02-03T21:15:37","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=10858"},"modified":"2016-02-04T23:28:07","modified_gmt":"2016-02-05T07:28:07","slug":"futures-options-trading-strategies-2-04-2016","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/futures-options-trading-strategies-2-04-2016\/","title":{"rendered":"Futures Options Trading Strategies 2.04.2016"},"content":{"rendered":"

Connect with Us! Use Our Futures Trading Levels and Economic Reports RSS Feed.
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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 Thursday February 4, 20<\/strong><\/a><\/strong>1<\/a>6<\/strong><\/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!
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<\/strong>A little bit about options below……If you like to download<\/strong><\/p>\n
an option eBook, click here.<\/a><\/div>\n

<\/strong><\/strong>Market Strategies\u00a0<\/strong>1.<\/strong>\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<\/strong><\/td>\nStrongest bullish option position<\/strong><\/td>\nLoss limited to premium<\/strong><\/td>\nUndervalued option with volatility increasing<\/strong><\/td>\n<\/tr>\n
Sell a put<\/strong><\/td>\nNeutral bullish option position<\/strong><\/td>\nProfit limited to debt<\/strong><\/td>\nSmall debit, bullish market<\/strong><\/td>\n<\/tr>\n
Vertical Bull Calls<\/strong><\/td>\nBuy call, sell call of higher strike price<\/strong><\/td>\nLoss limited to debt<\/strong><\/td>\nSmall debit, bullish market<\/strong><\/td>\n<\/tr>\n
Vertical Bull Puts<\/strong><\/td>\nBuy put, sell put of higher strike price<\/strong><\/td>\nLoss limited to price difference<\/strong><\/td>\nLarge credit, bullish market<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

<\/strong><\/strong>
\n2.<\/strong>\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<\/strong><\/td>\nStrongest bearish option position<\/strong><\/td>\nLoss limited to premium<\/strong><\/td>\nUndervalued option with volatility increasing<\/strong><\/td>\n<\/tr>\n
Sell a call<\/strong><\/td>\nNeutral bearish option position<\/strong><\/td>\nProfit limited to premium<\/strong><\/td>\nOption overvalued, market flat, bearish<\/strong><\/td>\n<\/tr>\n
Vertical Bear Calls<\/strong><\/td>\nBuy at the money put, sell out of the money put<\/strong><\/td>\nLoss limited to debt<\/strong><\/td>\nSmall debit, bearish market<\/strong><\/td>\n<\/tr>\n
Vertical Bear Puts<\/strong><\/td>\nSell call, buy call of higher strike price<\/strong><\/td>\nLoss limited to stroke price difference minus credit<\/strong><\/td>\nLarge credit, bearish market<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

<\/strong><\/strong>
\n3.<\/strong>\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<\/strong><\/td>\nSell out of the money put and call<\/strong><\/td>\nMaximum use of time value decay<\/strong><\/td>\nTrading range market with volatility peaking<\/strong><\/td>\n<\/tr>\n
Arbitrage<\/strong><\/td>\nBull and sell similar simultaneously<\/strong><\/td>\nProfit limited to debt<\/strong><\/td>\nAny time credit received<\/strong><\/td>\n<\/tr>\n
Calendar<\/strong><\/td>\nSell near month, buy far month, same strike price<\/strong><\/td>\nNear month time value decays faster<\/strong><\/td>\nSmall debit, trading range market<\/strong><\/td>\n<\/tr>\n
Butterfly<\/strong><\/td>\nBuy at the money call (put), sell 2 out of the money calls (puts), buy out of the money call (put)<\/strong><\/td>\n\u00a0<\/strong><\/td>\nAny time credit received<\/strong><\/td>\n<\/tr>\n
Guts<\/strong><\/td>\nSell in the money put and call<\/strong><\/td>\nReceive large premium<\/strong><\/td>\nFutures Options have time premium and market in trading range<\/strong><\/td>\n<\/tr>\n
Box<\/strong><\/td>\nBuy at the money put, sell out of the money put<\/strong><\/td>\n\u00a0<\/strong><\/td>\nSmall debit, bearish market<\/strong><\/td>\n<\/tr>\n
Ratio Call<\/strong><\/td>\nBuy call, sell calls of higher strike price<\/strong><\/td>\nNeutral, slightly bullish<\/strong><\/td>\nLarge credit and difference between stroke price of option bought and sold<\/strong><\/td>\n<\/tr>\n
Conversion<\/strong><\/td>\nBuy futures, buy at the money put, and sell out of the money call<\/strong><\/td>\n\u00a0<\/strong><\/td>\nAny time credit received<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

 <\/p>\n

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

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

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

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\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 March 2016<\/td>\nSP500<\/td>\nNasdaq100<\/td>\nDow Jones<\/td>\nMini Russell<\/td>\nDollar Index<\/td>\n<\/tr>\n
Resistance 3<\/td>\n1970.92<\/td>\n4349.00<\/td>\n16832<\/td>\n1052.33<\/td>\n100.54<\/td>\n<\/tr>\n
Resistance 2<\/td>\n1941.58<\/td>\n4282.00<\/td>\n16567<\/td>\n1034.47<\/td>\n99.75<\/td>\n<\/tr>\n
Resistance 1<\/td>\n1923.67<\/td>\n4224.50<\/td>\n16406<\/td>\n1020.83<\/td>\n98.47<\/td>\n<\/tr>\n
Pivot<\/td>\n1894.33<\/td>\n4157.50<\/td>\n16141<\/td>\n1002.97<\/td>\n97.68<\/td>\n<\/tr>\n
Support 1<\/td>\n1876.42<\/td>\n4100.00<\/td>\n15980<\/td>\n989.33<\/td>\n96.40<\/td>\n<\/tr>\n
Support 2<\/td>\n1847.08<\/td>\n4033.00<\/td>\n15715<\/td>\n971.47<\/td>\n95.61<\/td>\n<\/tr>\n
Support 3<\/td>\n1829.17<\/td>\n3975.50<\/td>\n15554<\/td>\n957.83<\/td>\n94.33<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Contract<\/td>\nApr. Gold<\/td>\nMarch Silver<\/td>\nMar. Crude Oil<\/td>\nMar. Bonds<\/td>\nMarch \u00a0 Euro<\/td>\n<\/tr>\n
Resistance 3<\/td>\n1171.6<\/td>\n15.46<\/td>\n36.72<\/td>\n165 24\/32<\/td>\n1.1456<\/td>\n<\/tr>\n
Resistance 2<\/td>\n1158.9<\/td>\n15.14<\/td>\n34.64<\/td>\n165<\/td>\n1.1306<\/td>\n<\/tr>\n
Resistance 1<\/td>\n1150.2<\/td>\n14.91<\/td>\n33.57<\/td>\n163 22\/32<\/td>\n1.1214<\/td>\n<\/tr>\n
Pivot<\/td>\n1137.5<\/td>\n14.59<\/td>\n31.49<\/td>\n162 30\/32<\/td>\n1.1064<\/td>\n<\/tr>\n
Support 1<\/td>\n1128.8<\/td>\n14.36<\/td>\n30.42<\/td>\n161 20\/32<\/td>\n1.0971<\/td>\n<\/tr>\n
Support 2<\/td>\n1116.1<\/td>\n14.04<\/td>\n28.34<\/td>\n160 28\/32<\/td>\n1.0821<\/td>\n<\/tr>\n
Support 3<\/td>\n1107.4<\/td>\n13.81<\/td>\n27.27<\/td>\n159 18\/32<\/td>\n1.0729<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Contract<\/td>\nMar. Corn<\/td>\nMar. Wheat<\/td>\nMar Beans<\/td>\nMar. SoyMeal<\/td>\nMarch Nat Gas<\/td>\n<\/tr>\n
Resistance 3<\/td>\n375.8<\/td>\n487.3<\/td>\n893.42<\/td>\n278.97<\/td>\n2.15<\/td>\n<\/tr>\n
Resistance 2<\/td>\n374.5<\/td>\n483.7<\/td>\n889.08<\/td>\n276.83<\/td>\n2.11<\/td>\n<\/tr>\n
Resistance 1<\/td>\n372.8<\/td>\n481.8<\/td>\n882.92<\/td>\n273.47<\/td>\n2.08<\/td>\n<\/tr>\n
Pivot<\/td>\n371.5<\/td>\n478.2<\/td>\n878.58<\/td>\n271.33<\/td>\n2.04<\/td>\n<\/tr>\n
Support 1<\/td>\n369.8<\/td>\n476.3<\/td>\n872.4<\/td>\n268.0<\/td>\n2.0<\/td>\n<\/tr>\n
Support 2<\/td>\n368.5<\/td>\n472.7<\/td>\n868.08<\/td>\n265.83<\/td>\n1.96<\/td>\n<\/tr>\n
Support 3<\/td>\n366.8<\/td>\n470.8<\/td>\n861.92<\/td>\n262.47<\/td>\n1.93<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
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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\n\n\n\n
Date<\/th>\n4:13pm<\/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
ThuFeb 4<\/td>\n<\/a>\u00a02:15am<\/td>\nUSD<\/td>\n<\/td>\nFOMC Member Rosengren Speaks<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n3:00am<\/td>\nEUR<\/td>\n<\/td>\nECB President Draghi Speaks<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n4:00am<\/td>\nEUR<\/td>\n<\/td>\nECB Economic Bulletin<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n4:10am<\/td>\nEUR<\/td>\n<\/td>\nRetail PMI<\/td>\n<\/td>\n<\/td>\n<\/td>\n49.0<\/td>\n<\/td>\n<\/tr>\n
<\/td>\nTentative<\/td>\nEUR<\/td>\n<\/td>\nSpanish 10-y Bond Auction<\/td>\n<\/td>\n<\/td>\n<\/td>\n1.46|2.6<\/td>\n<\/td>\n<\/tr>\n
<\/td>\nTentative<\/td>\nEUR<\/td>\n<\/td>\nFrench 10-y Bond Auction<\/td>\n<\/td>\n<\/td>\n<\/td>\n0.86|1.4<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n7:30am<\/td>\nUSD<\/td>\n<\/td>\nChallenger Job Cuts y\/y<\/td>\n<\/td>\n<\/td>\n<\/td>\n-27.6%<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n8:30am<\/td>\nUSD<\/td>\n<\/td>\nUnemployment Claims<\/td>\n<\/td>\n<\/td>\n279K<\/td>\n278K<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nUSD<\/td>\n<\/td>\nPrelim Nonfarm Productivity q\/q<\/td>\n<\/td>\n<\/td>\n-1.5%<\/td>\n2.2%<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nUSD<\/td>\n<\/td>\nPrelim Unit Labor Costs q\/q<\/td>\n<\/td>\n<\/td>\n3.9%<\/td>\n1.8%<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n10:00am<\/td>\nUSD<\/td>\n<\/td>\nFactory Orders m\/m<\/td>\n<\/td>\n<\/td>\n-2.5%<\/td>\n-0.2%<\/td>\n<\/td>\n<\/tr>\n
<\/td>\n10:30am<\/td>\nUSD<\/td>\n<\/td>\nNatural Gas Storage<\/td>\n<\/td>\n<\/td>\n-170B<\/td>\n-211B<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\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 Thursday […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67],"tags":[900,899,136,901],"class_list":["post-10858","post","type-post","status-publish","format-standard","hentry","category-future-trading-news","tag-bearish-market-strategies","tag-bullish-market-strategies","tag-futures-options-trading-strategies","tag-neutral-market-strategies"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/10858","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=10858"}],"version-history":[{"count":6,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/10858\/revisions"}],"predecessor-version":[{"id":10861,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/10858\/revisions\/10861"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=10858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=10858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=10858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}