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.
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Trade Options on Futures
E-Mini S&P * Directional & Neutral Positions
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E-Mini S&P
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: Click here to read a helpful tip about E-Mini SP futures and options
E-Mini S&P
* Tip: Understanding what the numbers mean when looking at E-Mini SP prices. The quotation you see is U.S. dollars and cents per 0.25 tick. Each contract you are buying or selling is index price x 50. 1 tick move is $12.50. Notional value of 2,432 = $121,600 USD.
Below are charts for reference.
Latest, Biggest, Busiest
Below is a snapshot with what's going on in the world of options with the most actively traded spreads.
Enlarge by right clicking mouse over each image and select 'open in a new tab'
Below is an illustration of the Mar21 3975/4000 Call spread shown in the 2nd column above as a popular spread.
* Tip: Click here on enlarging images
Strategies
* Tip: To view a larger chart image, simply right click on the image with your mouse. Next, select Open Image in New Tab.
Below are alternatives to popular spreads shown above.
The % yield shown in the diagram below represent a model of an estimated return on margin from projected dates shown. Both strategies below have positive time decay (theta) with time working for the position.
Put Butterfly
The position benefits from a decline in implied volatility and has positive time decay. It can be adjusted if the market rises by adding positive delta.
Vertical Swap
The vertical swap has low margin, negligible impact from change in implied volatility and is directionally bearish.
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