ACE E-Mini S&P - Feb 10, 2019

Below is an illustration trading futures options on E-Mini S&P.  Our post shows bullish and bearish positions using a combination of call and put options.


Trade Options on Futures

E-Mini S&P * Directional & Neutral Positions

Get your copy of Paul Forchione's book, "Using Futures Options for Day Trading & Hedging" for $10 USD.  Learn techniques from a professional options trader to manage risk while speculating on futures markets.

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Volatility

Options undervalued with volatility below historic levels.
ES BEARCALL
 
ES BULLPUT
 
For comparison purposes, I've included illustrations of simply purchasing a put option.  Beneath is a diagonal calendar spread.
 
ES LONGPUT
 
Diagonal calendar spread below with positive Vega which will help the spread benefit from a rise in implied volatility should the market sell off.  Compared to the Long Put above, the diagonal calendar has positive Theta as opposed to purchasing options with negative time decay.
 
ES DCAL

For more information in learning how to create and manage futures options positions, please reference the ACEProgram or Paul's books in the "Resources" section of our website.