Index Futures Update

News & commentary on Stock Index Futures markets including S&P 500, NASDAQ, Dow Jones Industrial Average & more.

Index Futures Update is a blog dedicated to bringing updates, news and commentary on stock index futures markets including the S&P 500, NASDAQ, Dow Jones Industrial Average and more.

This blog is brought to you by Zaner Group, one of America's oldest family-owned and operated futures and forex brokers.  Zaner provides a wide range of services from research and recommendations to the execution of all your futures needs.

We invite you to join the thousands of other Zaner clients that have enjoyed our services.  Click here to learn how to open an account with Zaner.

Futures, options and forex trading is speculative in nature and involves substantial risk of loss.  These recommendations are a solicitation for entering into derivatives transactions.  All known news and events have already been factored into the price of the underlying derivatives discussed.  From time to time persons affiliated with Zaner, or its associated companies, may have positions in recommended and other derivatives.


Posted on 7/20/2016 6:51:25 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

 

 

 

 


Posted on 7/20/2016 6:51:13 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

 

 

 

 


Posted on 7/13/2016 7:12:30 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

 

 

 

 


Equity Index Option Play: Bonds Blink First

Posted on 7/12/2016 1:04:50 PM by: Matt McKinney, Market Strategist @ Zaner. 312-277-0115.

Direct-312-277-0115, Cell-312-752-7482, http://www.mmckinneyfutures.com/

 

TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE.

 

 

Equity Index Option Play: Bonds Blink First

Amid The Market Distortion Of Both Record Bond Prices And Record Stock Prices, Bonds Blink First.


Fundamentally, Central Banks across the globe continue to hover in the background of Equity and Bond markets and the fact that they can and will intervene has caused some crazy price action. I never thought I would see the day when both Bonds and Equities traded near all time record highs.

Whether its the uncertain FED here in the U.S., or the constant, ongoing easing of the BOJ, or the BOE who's about to join the party, central banks across the globe have and will continue to tinker with markets. It's central banks across the world to the rescue.

Despite what negative impact hits the markets or economies, central banks will step in. This is the reason for the distorted markets.

How long can this go on? The "risk on" trade and the "safe haven" trade are both moving higher and flirting with all time record prices. What's next? Buying stocks on bad earnings? At least for now it looks like Bonds have blinked first. In addition, how long will central banks be effective in artificially stimulating stock markets?

As Equities race up and Big Money continues to buy, there is no fear of failure for American companies and banks. The uncertainty of Brexit, companies in England, and banks across the pond are about to be "taken care of" as well. And the Bank Of Japan seems to like rates below zero.Too big to fail is alive and well, globally.

My concern is the banks that trade because that cant make enough money on lending due to low rates. Yes it would appear, with credit so hard to get for the middle class, and with banks holding so much capital, trading the markets has become common for financial institutions.

If markets go south banks are at risk because they are so long the Equity markets. But dont worry systemic failure is not an option because the FED will launch more QE if needed. Proof that the markets believe this is the price correlation of Bonds and Stocks and higher Equities after Brexit.

This cant go on forever, but it can for a long time. There is talk that the FED will never raise rates. Markets can sell off violently and to not protect your Stock portfolio is juvenile. The Equity Index future options can be a great vehicle for that. As far as Bonds and Equities go, something's gotta give in a big way.

 

Contract Specifications: YM

  • Symbol - YM
  • Name - Dow Jones Industrial Average mini-sized (YM)
  • Exchange - CBOTM
  • Trading Months - HMUZ
  • Trading Unit - $5 times Index
  • Tick Size - 1 point ($5.00 per contract)
  • Daily Limit - 7.0%, 13.0% and 20.0% decline below the Settlement Price of the preceding session (limited to 5.0% outside of RTH)
  • Trading Hours - 5:00p.m. - 4:00p.m. (Sun-Fri) CST
  • Last Trading Day - Thursday before the third Friday
  • Value of one futures unit - $5
  • Value of one options unit - $5

 

I have added my favorite technical indicators to the charts below. I have coined them the "10/20/50/BB Trend Finder". They are the 10 (red line), 20 (green line), and the 50 (blue line) day Simple Moving Averages or SMAs. For this commentary I have also added the 100 day SMA. I have also added Bollinger Bands or BBs (light blue shaded area) and Candlesticks (the red and green bars with the candlestick wicks, and on a daily chart each bar represents one day of trading).

These few technical indicators can tell me many, many different characteristics about the market at a quick glance so I have them saved on my charts in MARKETHEAD, so they can populate on any chart I choose at the click of a mouse.

Technically, on the daily chart above the YM has posted a new all time record high close.

 

Technically, on the daily chart above the ZB market has posted a new all time record high close and then sold off below the first area of support which is the 10 day SMA.

I figured all this out by putting my "10/20/50/BB Trend Finder" on the charts above and applying these indicators to the charts at the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne, which is a web application that we have developed for our clients called MARKETHEAD where I get about 70-80% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 18 years. So if Im using it then maybe my readers should check it out. Yes?

 

 

Equity Index Option Play:

One strategy that could be used here is to buy limited risk put options or bear put spreads and in a 3 to 1 ratio a call. Another potential Equity Index Option Play could be to sell calls, prepared to buy a futures on an upward move.

For exact details on this strategy, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com.

 

CME Options On Futures: The Basics: http://www.zaner.com/offers/?page=9&ap=mmckinne

FREE QUOTE- "It Is Better To Offer No Excuse, Than A Bad One."

-George Washington.

 

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION'S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE'S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.


Equity Index Options Play: Central Banks And Distorted Markets

Posted on 7/10/2016 10:05:56 AM by: Matt McKinney, Market Strategist @ Zaner. 312-277-0115.

Direct-312-277-0115, Cell-312-752-7482, http://www.mmckinneyfutures.com/

 

TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE.

 

 

Equity Index Options Play: Central Banks And Distorted Markets

It Would Appear That The Markets Dont Care About Inverse Relationships As Bond Prices And Stock Prices Tinker At All Time Record Highs.


Fundamentally, Central Banks across the globe continue to hover in the background of Equity and Bond markets and the fact that they can and will intervene has caused some crazy price action. I never thought I would see the day when both Bonds and Equities traded near all time record highs.

How can this go on? The risk on trade and the safe haven trade are both moving higher and flirting with all time record prices. What's next? Buying stocks on bad earnings?

As Equities race up and Big Money continues to buy, there is no fear of failure for American companies and banks. Too big to fail is alive and well.

My concern is the banks that trade because that cant make enough money on lending due to low rates. With credit so hard to get for the middle class, and with banks holding so much capital, trading he markets has become common for financial institutions.

If markets go south banks are at risk because they are so long the Equity markets. But dont worry systemic failure is not an option because the FED will launch more QE if needed. Proof that the markets believe this is the price correlation of Bonds and Stocks and higher Equities after Brexit.

This cant go on forever, but it can for a long time. There is talk that the FED will never raise rates. Markets can sell off violently and to protect your Stock portfolio is juvenile. The Equity Index future options can be a great vehicle for that.As far as Bonds and Equities go, somethings gotta give.

 

Contract Specifications: YM

  • Symbol - YM
  • Name - Dow Jones Industrial Average mini-sized (YM)
  • Exchange - CBOTM
  • Trading Months - HMUZ
  • Trading Unit - $5 times Index
  • Tick Size - 1 point ($5.00 per contract)
  • Daily Limit - 7.0%, 13.0% and 20.0% decline below the Settlement Price of the preceding session (limited to 5.0% outside of RTH)
  • Trading Hours - 5:00p.m. - 4:00p.m. (Sun-Fri) CST
  • Last Trading Day - Thursday before the third Friday
  • Value of one futures unit - $5
  • Value of one options unit - $5

 

I have added my favorite technical indicators to the charts below. I have coined them the "10/20/50/BB Trend Finder". They are the 10 (red line), 20 (green line), and the 50 (blue line) day Simple Moving Averages or SMAs. For this commentary I have also added the 100 day SMA. I have also added Bollinger Bands or BBs (light blue shaded area) and Candlesticks (the red and green bars with the candlestick wicks, and on a daily chart each bar represents one day of trading).

These few technical indicators can tell me many, many different characteristics about the market at a quick glance so I have them saved on my charts in MARKETHEAD, so they can populate on any chart I choose at the click of a mouse.

Technically, on the daily chart above the YM has posted a new all time record high close.

 

Technically, on the daily chart above the ZB market has posted a new all time record high close.

I figured all this out by putting my "10/20/50/BB Trend Finder" on the charts above and applying these indicators to the charts at the click of a mouse which I found at: http://www.markethead.com/2.0/free_trial.asp?ap=mmckinne, which is a web application that we have developed for our clients called MARKETHEAD where I get about 70-80% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 18 years. So if Im using it then maybe my readers should check it out. Yes?

 

 

Option Play:

One strategy that could be used here is to buy limited risk put options or bear put spreads and in a 3 to 1 ratio a call. Another potential Equity Index Option Play could be to sell calls, prepared to buy a futures on an upward move.

For exact details on this strategy, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com.

 

CME Options On Futures: The Basics: http://www.zaner.com/offers/?page=9&ap=mmckinne

FREE QUOTE- "It Is Better To Offer No Excuse, Than A Bad One."

-George Washington.

 

FUTURES, OPTIONS AND FOREX TRADING IS SPECULATIVE IN NATURE AND INVOLVES SUBSTANTIAL RISK OF LOSS. THESE RECOMMENDATIONS ARE A SOLICITATION FOR ENTERING INTO DERIVATIVES TRANSACTIONS. ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING DERIVATIVES DISCUSSED. FROM TIME TO TIME PERSONS AFFILIATED WITH ZANER, OR ITS ASSOCIATED COMPANIES, MAY HAVE POSITIONS IN RECOMMENDED AND OTHER DERIVATIVES.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERDLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION'S STICKE PRICE COMPARES TO THE UNDERLYING FUTURE'S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT OPTIONS PRICES MAY ONLY MOVE A LITTLE.

THE LIMITED RISK CHARACTERISTIC OF OPTIONS REFERS TO LONG OPTIONS ONLY AND REFERS TO THE AMOUNT OF THE LOSS, WHICH IS DEFINED AS THE PREMIUM PAID ON THE OPTION(S) PLUS FEES.


Posted on 7/6/2016 6:37:14 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

 

 

 

 


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