ACE E-Mini S&P - July 22, 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

IV still above statistical levels in the 27th percentile

es optv vol

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 19th @ 2971

Direction

Last week close above MACDP. monthly

Resistance

3130.75 COP monthly
3112.75 XOP weekly
3063.00 Upper OscP band. weekly
3031.50 127.2% weekly

Support

2969.25 Prior high turned support. monthly
2912.50 F3 weekly
2844.00 F5 weekly
2956-65 K daily
2948.50 Lower OscP band. daily
2929.50 F5. daily

es month 2

es weekly

es daily

es 4hr

* 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 an example of a Kevlar trade.

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 to the downside without any adjustment.

es kevlar

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