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 describing advanced techniques on futures options. Learn techniques from a professional options trader to manage risk while speculating on futures markets.
Click here to view Paul's eBook
By using our website, you agree to accept our terms of use (click to read)
Terms of Use & Disclaimer:
Entries shown in our Watchlist and MarketPlus do not include commissions and are based on listed settlement prices for reference only.
This publication is intended solely for information purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or solicitation to buy or sell or trade in any commodities or securities herein named. Information is obtained from sources believed to be reliable, but is in no way guaranteed. No guarantee of any publication is construed as an express or implied promise, guarantee or implication by or from Oahu Capital Group, LLC, Oahu Capital Group (Asia) Pvt. Ltd. that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. All investments are subject to risk, which should be considered prior to making trading decisions.
CFTC regulation 4.41 requires the following disclaimer:
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT , THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCES RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELEY AFFECT ACTUAL TRADING RESULTS.
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. Both strategies below have positive time decay (theta) with time working for the position.
Vertical Swap
So far, smooth sailing higher in light of the job numbers possibly targeting all time highs earlier in the year. Possibly attainable with push higher where volatility would remain low if no short term fears. June FOMC meeting, will Fed back off further pushing market higher?
Calendarized Put Fly
If something happens causing a spike in volatility on any surprises, spread below has positive Vega taking advantage of any sudden fall.
Join our Free Webcast each month and learn how these strategies can benefit your trading.
Sign Up Now
