ACE E-Mini S&P - Jun 16, 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, "Calendar Spreads".  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.

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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.

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es weekly

es 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 diagonal calendar fly which falls in line with Paul's weekly report based on looking at implied in relation to statistical volatility levels. The position is delta neutral and would benefit if prices fell with an increase in implied volatility. It would have an additional gain on top of the directional play due to positive Vega in the position.

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 dcal fly