{"id":13883,"date":"2018-01-29T13:45:40","date_gmt":"2018-01-29T21:45:40","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=13883"},"modified":"2018-01-30T02:25:47","modified_gmt":"2018-01-30T10:25:47","slug":"futures-options-101-1-30-2018","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/futures-options-101-1-30-2018\/","title":{"rendered":"Futures Options 101 1-30-2018"},"content":{"rendered":"

____________________________________________________________________<\/em><\/strong><\/p>\n

Voted #1 Blog and #1 Brokerage Services on\u00a0\u00a0TraderPlanet<\/a>\u00a0 \u00a0for 2016!!<\/em><\/strong><\/p>\n

____________________________________________________________________<\/em><\/strong><\/p>\n

\n
\n

Front month for crude oil and Natural gas is March.<\/p><\/blockquote>\n

Front month for gold is now April.<\/p><\/blockquote>\n

Market Strategies using options<\/strong><\/p><\/blockquote>\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

<\/p>\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<\/blockquote>\n<\/div>\n

Read the Rest!<\/a><\/p>\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.\u00a0 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

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

1-30-2018\u00a0<\/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
Contract March 2018<\/td>\n\u00a0SP500<\/td>\nNasdaq100<\/td>\nDow Jones<\/td>\nMini Russell<\/td>\nBitCoin Index<\/td>\n<\/tr>\n
Resistance 3<\/td>\n2898.00<\/td>\n7100.42<\/td>\n26871<\/td>\n1623.60<\/td>\n12465.00<\/td>\n<\/tr>\n
Resistance 2<\/td>\n2888.25<\/td>\n7073.83<\/td>\n26778<\/td>\n1618.20<\/td>\n12120.00<\/td>\n<\/tr>\n
Resistance 1<\/td>\n2871.00<\/td>\n7033.17<\/td>\n26603<\/td>\n1608.10<\/td>\n11660.00<\/td>\n<\/tr>\n
Pivot<\/td>\n2861.25<\/td>\n7006.58<\/td>\n26510<\/td>\n1602.70<\/td>\n11315.00<\/td>\n<\/tr>\n
Support 1<\/td>\n2844.00<\/td>\n6965.92<\/td>\n26335<\/td>\n1592.60<\/td>\n10855.00<\/td>\n<\/tr>\n
Support 2<\/td>\n2834.25<\/td>\n6939.33<\/td>\n26242<\/td>\n1587.20<\/td>\n10510.00<\/td>\n<\/tr>\n
Support 3<\/td>\n2817.00<\/td>\n6898.67<\/td>\n26067<\/td>\n1577.10<\/td>\n10050.00<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Contract<\/td>\nApr. Gold<\/td>\nMar. Silver<\/td>\nMar. Crude Oil<\/td>\nMar.\u00a0 Bonds<\/td>\nMar.\u00a0 Euro<\/td>\n<\/tr>\n
Resistance 3<\/td>\n1368.9<\/td>\n17.77<\/td>\n67.76<\/td>\n150\u00a0 4\/32<\/td>\n1.2561<\/td>\n<\/tr>\n
Resistance 2<\/td>\n1362.6<\/td>\n17.62<\/td>\n67.11<\/td>\n149 17\/32<\/td>\n1.2515<\/td>\n<\/tr>\n
Resistance 1<\/td>\n1353.5<\/td>\n17.39<\/td>\n66.28<\/td>\n148 25\/32<\/td>\n1.2466<\/td>\n<\/tr>\n
Pivot<\/td>\n1347.2<\/td>\n17.24<\/td>\n65.63<\/td>\n148\u00a0 6\/32<\/td>\n1.2420<\/td>\n<\/tr>\n
Support 1<\/td>\n1338.1<\/td>\n17.00<\/td>\n64.80<\/td>\n147 14\/32<\/td>\n1.2371<\/td>\n<\/tr>\n
Support 2<\/td>\n1331.8<\/td>\n16.85<\/td>\n64.15<\/td>\n146 27\/32<\/td>\n1.2325<\/td>\n<\/tr>\n
Support 3<\/td>\n1322.7<\/td>\n16.62<\/td>\n63.32<\/td>\n146\u00a0 3\/32<\/td>\n1.2276<\/td>\n<\/tr>\n
<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Contract<\/td>\nMar.\u00a0 Corn<\/td>\nMar. Wheat<\/td>\nMarch Beans<\/td>\nMar. SoyMeal<\/td>\nMar. Nat Gas<\/td>\n<\/tr>\n
Resistance 3<\/td>\n362.3<\/td>\n456.4<\/td>\n1009.75<\/td>\n346.13<\/td>\n3.38<\/td>\n<\/tr>\n
Resistance 2<\/td>\n360.8<\/td>\n453.1<\/td>\n1004.00<\/td>\n343.87<\/td>\n3.28<\/td>\n<\/tr>\n
Resistance 1<\/td>\n359.8<\/td>\n451.2<\/td>\n997.75<\/td>\n340.63<\/td>\n3.23<\/td>\n<\/tr>\n
Pivot<\/td>\n358.3<\/td>\n447.8<\/td>\n992.00<\/td>\n338.37<\/td>\n3.13<\/td>\n<\/tr>\n
Support 1<\/td>\n357.3<\/td>\n445.9<\/td>\n985.8<\/td>\n335.1<\/td>\n3.1<\/td>\n<\/tr>\n
Support 2<\/td>\n355.8<\/td>\n442.6<\/td>\n980.00<\/td>\n332.87<\/td>\n2.99<\/td>\n<\/tr>\n
Support 3<\/td>\n354.8<\/td>\n440.7<\/td>\n973.75<\/td>\n329.63<\/td>\n2.93<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Economic Reports, source:\u00a0<\/strong><\/p>\n

http:\/\/app.bettertrader.co<\/p>\n

\"Economic
\nThis is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts\u00a0here in\u00a0contained are derived from sources believed to be\u00a0reliable,\u00a0but are not guaranteed as to\u00a0accuracy, 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\u00a0judgement\u00a0in trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

____________________________________________________________________ Voted #1 Blog and #1 Brokerage Services on\u00a0\u00a0TraderPlanet\u00a0 \u00a0for 2016!! ____________________________________________________________________ Front month for crude oil and Natural gas is March. Front month for gold is now April. Market Strategies using options 1.\u00a0Bullish Market Strategies Futures Options Trading Spread Strategy Description Reason to Use When to Use Buy a call Strongest bullish option position […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67,233],"tags":[350,363,1024,136,144],"class_list":["post-13883","post","type-post","status-publish","format-standard","hentry","category-future-trading-news","category-options-trading-2","tag-economic-reports","tag-futures-options","tag-futures-options-101","tag-futures-options-trading-strategies","tag-futures-trading-levels"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/13883","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=13883"}],"version-history":[{"count":5,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/13883\/revisions"}],"predecessor-version":[{"id":13888,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/13883\/revisions\/13888"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=13883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=13883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=13883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}