ACE E-Mini S&P - Apr 29, 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, "Trading Iron Condors".  Learn techniques from a professional options trader to manage risk while speculating on futures markets.

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cme es Larry

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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.


Notes:

Contract Size - $50 x S&P 500 Index.

Tick Size:  Outright: 0.25 index points=$12.50

Trading Hours: CME Globex: Sunday - Friday 6:00 p.m. - 5:00 p.m. Eastern Time (ET) with  trading halt 4:15 p.m. - 4:30 p.m.

* Tip: Understanding what the numbers mean when looking at E-Mini S&P prices. The quotation you see is U.S. dollars and cents per 0.25 tick. Each contract you are buying or selling is is index price x 50.  A 1 tick move is $12.50. Notional value of 2,432 = $121,600 USD.

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about E-Mini S&P futures and options


E-Mini S&P

Below are charts for reference.

es chart weekly

es chart daily

* Tip: To view a larger chart image, simply right click on the image with your mouse. Next, select view image. Be sure to click the back arrow on your browser to go back to the original page.

?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here on enlarging images


Strategies

Below is a reverse calendar which falls in line with Paul's weekly report based on looking at implied in relation to statistical volatility levels. The spread is a pure directional play.

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.

es rev calendar

Here's a diagonal calendar spread to the downside. It takes into consideration that IV would increase with a sell off in the market and maintains positive Vega. It's a variation to a standard calendar spread to reduce both margin requirement and lessen Vega.

es calendar bear