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.
Click here to view Paul's eBook
By using our website, you agree to accept our terms of use (click to read)
Volatility
Options fall into the category of being slightly undervalued in non-volatile markets in the weekly options report.
Term Structure
Notes:
Contract Size - 40,000 lbs (~ 18 MT)
Tick Size: $.00025 per pound (=$10 per contract)
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.
?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about Live Cattle futures and options
Live Cattle
Below are weekly & daily charts for reference.
Strategies illustrate both views into summer months, whether a continued fall in price with slight retracement to the upside or a potential reversal.
?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here on enlarging images
Strategies
Below are 2 separate strategies. First is a calendar put for a further push bearish. Second is a broken wing iron condor based on implied volatility being slightly higher than historic levels at time of this post.
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.
