Below is an illustration trading futures options on EuroFX. Our post shows bullish and bearish positions using a combination of call and put options.
Trade Options on Futures
EuroFX * Directional & Neutral Positions
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CME Commentary on Aug 6th (Thu) prior to drop on Fri.
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Volatility
Commentary
Blu Putnam's commentary on Aug 6th providing a larger picture overview on EU
- Euro Rallies Amid Europe's Pandemic Response
- EU members to collectively raise 750 billion euros from bonds issued.
- Ground-breaking move to stimulate sagging economy rallies euro.
- Debt issuance binds 27 EU members in a coordinated fiscal initiative.
- Member-nations hit the hardest by pandemic will receive grants.
Notes:
Contract Size - $125,000 Euros
Tick Size: 0.0001=$12.50 for premium
Trading Hours:
Sunday - Friday 6:00 p.m. - 5:00 p.m. (5:00 p.m. - 4:00 p.m. Chicago Time/CT) with a 60-minute break each day beginning at 5:00 p.m. (4:00 p.m. CT).
* Tip: Understanding what the numbers mean when looking at EuroFX prices. The quotation you see is in U.S. dollars and cents on the index. The multiplier is 125,000 Euros. So, a quote of 1.1350 on the index is the standard quotation. Each contract you are buying or selling is where you take the price times 125000 (125000 x $1.1350 = $141,875 for contract). So, a 1 tick move is $0.0001 x 125000 = $12.50 USD per tick up or down on the futures.
?ml=1" class="modal_link" data-modal-class-name="no_title">* Tip: Click here to read a helpful tip about EuroFX futures and options
EUROFX
Below are weekly & daily 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 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.
Calendar Spread
Below are calendar spreads.
