ACE E-Mini S&P - July 12, 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

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Volatility

Overall volatililty has been low while market trends higher.

es vol

es VIX


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.  F3=38.2 ; F5 = 61.8 retracements ; BB = Bollinger Bands

Currently the E-mini S&P closed July 12th @ 3014.25

Direction

2976 above resistance high monthly
3025.25 top of BB monthly, high volatility week, Stoch up
3015.50 below MACDP daily. Rise above bullish

VIX at low of 12.39

Resistance

3027.75 upper BB band daily
3019.50 XOP resistance daily high

Support

2997.25 F3 daily
2984.25 F5 daily
2978.50 F3 daily
2909.25 F3 weekly
2897.50 center BB weekly
2841.75 F5 weekly
2590.25 F5 weekly

es monthly

es weekly

es daily

Magnified technical view.

es dlevels 2

* 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 broken wing butterfly with negative vega.

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.  Position has a wide range of prices to profit from and can be adjusted. The position would lose if price broke quickly out of the range without any adjustment.

es bwb

Below is a calendar spread on VIX options hedging vega risk to the downside as a possible add-on consideration.  Strategy variations can be found in Paul Forchione's eBooks with link listed above.

es vix calendar

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