ACE Live Cattle - May 06, 2019

Below is an illustration trading futures options on Live Cattle.  Our post shows bullish and bearish positions using a combination of call and put options.


Trade Options on Futures

Live Cattle * 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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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.

le optv


Term Structure

le quikstrike term


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.

* 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.

le weekly 05 06

le daily 05 06

* 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.

bear calput

broken wing condor

Learn More

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