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
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.
* 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
The % yield shown in the diagram below represent an estimated return on margin from projected dates shown.
Futures Prices
Option Spreads
Below is a series of different strategies one may consider in trading the E-Mini S&P posted for the week of March 23rd. If you're interested in learning how these or other commodity and financial futures markets can be traded for hedging or speculative purposes, please contact us. Join our free webcasts each week at the end of the posts.
Illustration of a 1 standard deviation bull spread to the upside.
Below is a call butterfly to the upside which takes advantage of decline in implied volatility of markets pick up in the next 30 days or so. News of CoV-19 of over-the-counter drugs showing some effectiveness may kick in some confidence over the long haul.
Below is a calendar put spread to the downside given potential long term impact of CoV-19 on the global economy.
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