ACE 30 Year Bond - Apr 07, 2019

Below is an illustration trading futures options on 30 year bond (ZB).  Our post shows bullish and bearish positions using a combination of call and put options.


Trade Options on Futures

30 Year Bond (ZB) * Directional & Neutral Positions

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Highlights

  • Employment report better than expected

  • High of 123'22 Low of 123'08

  • Wage number was weaker than expected

  • Seller pressure has slowed to end last week

  • Holding downtrend which is slowing

  • Fed minutes next week with ECB

  • News breaking on Brexit could impact rates

Volatility

Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report. 
Ask about the Weekly Option's Report for more information or watch our video.

zb optv


Notes:

Contract Size - Points ($1,000) and 1/32 of a point. For example, 134-16 represents 134 16/32.

Tick Size:  1/64 of a point ($15.625/contract), rounded up to the nearest cent/contract.

Trading Hours: CME Globex: Sunday - Friday 5:00 p.m. - 4:00 p.m. Eastern Time (CST).

* Tip: Click here to read a helpful tip about Bond futures and options


30 Year Bonds

Below are weekly & daily charts for reference.

zb weekly

zb daily

* Tip: Click here on enlarging images


Strategies

Below is the starting position for an strangle swaps. It allows for time to adjust the spread structure if necessary as price moves within a reasonable range of daily volatility. If prices rebound slightly near technical support levels (Fibonacci and Bollinger Band center) remaining above at 146 range, the structure will profit.

The % yield shown in the diagrams below represent an estimated return on margin from projected dates shown below. The structure has positive time decay which is an advantage over holding outright options.

zb sswap post

Learn More

We look forward to answering your questions and helping you get started