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NQ Power Range Report with FIB Ext - 9/6/2023 SessionCME_MINI:NQU2023 - PR High: 15525.50 - PR Low: 15509.75 - NZ Spread: 32.25 Economic Events: 09:45 – S&P Global Services PMI 10:00 – ISM Non-Manufacturing PMI - ISM Non-Manufacturing Prices Prev session closed relatively flat - Still inside Friday's range - Fair to expect a breakout trend in the near future Evening Stats (As of 12:05 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 237.20 - Volume: 17K - Open Int: 259K - Trend Grade: Neutral - From ATH: -7.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
NQ Power Range Report with FIB Ext - 9/5/2023 SessionCME_MINI:NQU2023 - PR High: 15534.25 - PR Low: 15514.00 - NZ Spread: 45.25 Expected high volume following long weekend Evening Stats (As of 1:15 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 246.89 - Volume: 99K - Open Int: 259K - Trend Grade: Neutral - From ATH: -7.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
U.S. Unemployment crossing 20 month MA is usually very bearishHistorically, when unemployment crosses the 20 month moving average, a spike in unemployment follows in the next 12 months. These spikes in unemployment usually correspond with market downside in the S&P 500. The majority of the losses in the S&P usually happen early within the rise of unemployment. The recent rise of unemployment from 3.6 to 3.8 reported Friday September 1 2023 has put unemployment above the 20 month moving average. This is an early warning sign for a possible recession in the next 12 months.
FRED:UNRATEShort
by johnfzoidberg
NQ Power Range Report with FIB Ext - 9/1/2023 SessionCME_MINI:NQU2023 - PR High: 15536.00 - PR Low: 15522.50 - NZ Spread: 30.00 Economic Calendar Events: 08:30 – Average Hourly Earnings - Nonfarm Payrolls - Unemployment Payrolls 10:00 – ISM Manufacturing PMI - ISM Manufacturing Prices Long weekend - Holiday Monday Continuing to inch daily supply higher - Relatively same NZ spread as prev session - Break into bull zone leading into London session Evening Stats (As of 1:45 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 246.75 - Volume: 17K - Open Int: 256K - Trend Grade: Neutral - From ATH: -7.4% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
NQ Power Range Report with FIB Ext - 8/31/2023 SessionCME_MINI:NQU2023 - PR High: 15516.00 - PR Low: 15503.00 - NZ Spread: 29.00 08:30 – Initial Jobless Claims - Core PCE Price Index Peak into bull zone before declining below PR-1 - Overall hanging out in NZ - Daily push of supply with reversal potential Evening Stats (As of 12:05 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 254.59 - Volume: 20K - Open Int: 252K - Trend Grade: Neutral - From ATH: -7.4% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
Can NVTA reverse and rise?NVTA on the daily chart is in deep undervalued territory at the third lower Bollinger Band. It put in a green engulfing candle after a Doji candle. The TTM squeeze indicator fired a trigger while the lower TF RS line is about to cross the higer TF line and the 50 level. The MACD lines crossed while under the histogram which is a low amplitude green. The two most recent earnings reports were beats. Price ran 50% in late April and 60% in early July, I believe that another run is now possible for this long trade setup. Penny stocks like this have the ability to build momentum and upward volatility quickly.
NLong
by AwesomeAvani
NQ Power Range Report with FIB Ext - 8/30/2023 SessionCME_MINI:NQU2023 - PR High: 15443.25 - PR Low: 15423.00 - NZ Spread: 45.25 Economic Calendar Events 08:15 – ADP Nonfarm Employment Change 08:30 – GDP 10:00 – Pending Home Sales 10:30 – Crude Oil Inventories Slight continuation of prev session supply run - Retracing back to NZ ahead of London hours Evening Stats (As of 12:05 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 263.51 - Volume: 22K - Open Int: 256K - Trend Grade: Neutral - From ATH: -7.8% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
NQ Power Range Report with FIB Ext - 8/29/2023 SessionCME_MINI:NQU2023 - PR High: 15112.25 - PR Low: 15096.00 - NZ Spread: 36.25 Economic Calendar 10:00 – CB Consumer Confidence - JOLTs Job Openings Pivot long set at ~14800 - Maintaining daily inventory - Carrying supply into daily Keltner20 Evening Stats (As of 1:05 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 255.85 - Volume: 19K - Open Int: 252K - Trend Grade: Neutral - From ATH: -9.9% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
Bitcoin Volatility Expected in September!Recent market analysis and expert opinions, particularly those of Arthur Hayes (ex-CEO of BitMEX), suggest that BTC may experience significant choppiness around the $25,000 mark. While the cryptocurrency market has always been known for its volatility, the potential fluctuations in Bitcoin's value during this period could be particularly pronounced. As a concerned member of our trading community, I strongly urge you to exercise caution and consider pausing your Bitcoin trading activities during this time. Arthur Hayes, a prominent figure in the crypto industry and the co-founder of BitMEX, has made noteworthy predictions in the past. Given his experience and expertise, paying attention to his latest insights is essential. Hayes believes the market conditions in September may lead to choppy price movements, making it challenging to predict Bitcoin's trajectory accurately. Given this information, I encourage you to reconsider your trading strategies. It may be prudent to halt your Bitcoin trading activities until the market stabilizes temporarily. This pause will allow you to avoid unnecessary risks and potential losses associated with heightened volatility. Remember, the goal of any successful trader is not just to maximize profits but also to manage risks effectively. By temporarily stepping away from Bitcoin trading during this uncertain period, you can protect your investments and ensure a more stable trading experience in the long run. Please take this warning seriously and consider the potential consequences of trading Bitcoin in the upcoming month. Keep a close eye on the market, stay informed, and make informed decisions based on your risk tolerance and investment goals. If you have any questions or concerns, please do not hesitate to comment.
BITSTAMP:BTCUSD
by bryandowningqln
NQ Power Range Report with FIB Ext - 8/28/2023 SessionCME_MINI:NQU2023 - PR High: 15030.00 - PR Low: 14982.50 - NZ Spread: 106.0 Wide NZ Spread - Hanging out inside Friday's highs No Significant Economic Events Evening Stats (As of 12:05 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 265.68 - Volume: 27K - Open Int: 251K - Trend Grade: Neutral - From ATH: -10.6% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023
by mv3trader5
NQ Power Range Report with FIB Ext - 8/25/2023 SessionCME_MINI:NQU2023 - PR High: 14871.25 - PR Low: 14830.00 - NZ Spread: 92.25 10:05 – Feb Chair Powell Speaks Prev session printed as huge engulfing bar - Lows taken out from prev 2 sessions - Retracing to inventory < 14730 Evening Stats (As of 1:55 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 263.98 - Volume: 36K - Open Int: 257K - Trend Grade: Neutral - From ATH: -11.4% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023
by mv3trader5
NQ Power Range Report with FIB Ext - 8/24/2023 SessionCME_MINI:NQU2023 - PR High: 15344.75 - PR Low: 15295.50 - NZ Spread: 110.25 Key Economic Events 08:30 – Initial Jobless Claims - Core Durable Goods Orders Wide NZ spread - High vols ahead of pre-RTH news Evening Stats (As of 1:35 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 245.46 - Volume: 47K - Open Int: 256K - Trend Grade: Neutral - From ATH: -8.4% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
NQ Power Range Report with FIB Ext - 8/23/2023 SessionCME_MINI:NQU2023 - PR High: 14980.75 - PR Low: 14960.00 - NZ Spread: 46.25 Economic Events 08:30 – Building Permits 09:45 – S&P Global US Services PMI 10:00 – New Home Sales Evening Stats (As of 12:15 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 232.51 - Volume: 24K - Open Int: 253K - Trend Grade: Neutral - From ATH: -10.5% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
OSCR Earnings Beat Setup LONGOSCR on the daily chart is shown near to but below the POC line on the volume profile anchored in April. The ZL MACD has a low amplitude histogram. On the directional index indicator both negative and positive lines are nearly trendless at the 20 level. The price is closer to the lower Bollinger Bands and so a reversion to the mean would be upward price action. I am looking to take a long trade here. The entry would be by a buy stop over the POC line at 7.35 and the stop loss at 7.05, the low of the last red candle. The targets are 8.75 and 9.85 corresponding to horizontal resistance lines. This is a swing trade planning for a profit of about 30%. The stop loss of 0.30 as compared with an average target of 1.75 is about 1:5 for the risk to reward. I may take an options trade of 1-3 months duration as well. Leave a commnet , if you would like to know my considerations for a call option. Healthcare and medical are relatively strong sectors right now compared with the chaotic market at large.
NYSE:OSCRLong
by AwesomeAvani
ZW- Wheat Futures Reverse to Upside LONGZW is shown as the December 2023 contracts on the 2H chart have reversed in the past two days and price has increased over 2% in that interval. The indicators show a flip in the volatility and a blue bar volume spike in the reversal. Price is presently about 15% below the double tops and pivot highs of June and July. Price is presently crossing over the mean VWAP anchored 7-8 trading days ago and so demonstrating the bullish momentum of the past couple of days. I see this as an excellent long trade setup especially suitable to using leverage in the trade and expect the uptrend to potentially capture a 7-8% gain in the retracement of the downtrend then amplified by the leverage applied.
CBOT:ZWZ2023Long
by AwesomeAvani
NQ Power Range Report with FIB Ext - 8/18/2023 SessionCME_MINI:NQU2023 - PR High: 14759.75 - PR Low: 14730.25 - NZ Spread: 66.0 No significant calendar events Continuing daily inventory decline Evening Stats (As of 2:15 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 236.37 - Volume: 40K - Open Int: 258K - Trend Grade: Neutral - From ATH: -12.0% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14675 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Long
by mv3trader5
1
NQ Power Range Report with FIB Ext - 8/17/2023 SessionCME_MINI:NQU2023 - PR High: 14954.50 - PR Low: 14938.00 - NZ Spread: 37.0 08:30 – Initial Jobless Claims - Philadelphia Fed Manufacturing Index Continuing cheap inventory hunt - Broke and held below ~15030 pivot - Retraced back into NZ from PR-3 into London open Evening Stats (As of 1:25 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 234.65 - Volume: 37K - Open Int: 256K - Trend Grade: Neutral - From ATH: -11.0% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14961 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
NQ Power Range Report with FIB Ext - 8/16/2023 SessionCME_MINI:NQU2023 - PR High: 15123.25 - PR Low: 15109.00 - NZ Spread: 31.75 !FOMC Day! 08:30 – Building Permits 10:30 – Crude Oil Inventories 14:00 – FOMC Meeting Minutes Return to daily pivot low Evening Stats (As of 1:05 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 234.01 - Volume: 27K - Open Int: 259K - Trend Grade: Neutral - From ATH: -9.9% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14961 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023Short
by mv3trader5
EURUSD 15 MIN Analysis // Potential bullishI usually don't really look at the charts for long, but today I was just bored and had nothing else to do at work. I trade London session btw. 9PM-1:30 AM (GMT-5). Practicing at the moment on DEMO to later do a challenge to get funded. :D Can't wait, but I can wait. Missed a trade opportunity Monday. Tuesday there was no opportunity. ---------------------------------------------------------------------------------------- The REASON why I think market is going bullish or potentially: 1. DXY (Dollar) is in a uptrend (15 MIN) but if market breaks previous low (creating a LL), I would consider it as a downtrend. Of course though it has to make a (LH) after that to be consider downtrend. 2. EURUSD is in a downtrend (15 MIN) overall but if market breaks previous high (creating a HH), I would consider it as a uptrend. And like I said of course though it has to make a (HL) after that to be consider uptrend. NOTE****: Orange line is what I want EURUSD to break, to potential be an uptrend. If it does break I want to see a HL to form to take an entry. Would like to see it form in a demand area. But overall we would just have to wait and see.
by SimpleAsItGets
NQ Power Range Report with FIB Ext - 8/15/2023 SessionCME_MINI:NQU2023 - PR High: 15316.25 - PR Low: 15273.75 - NZ Spread: 95.0 08:30 – Retail Sales Maintaining relatively wide NZ Spread - MNQ Balance: 15295.25 - 15314.25 - Strong inventory response prev 2 sessions' low - Daily pivot created, engulfing Friday's range Evening Stats (As of 12:15 AM) - Weekend Gap: N/A - Session Gap: -0.33% (open > 15807) - Session Gap: -0.11% (open > 15939) - Session Open ATR: 233.68 - Volume: 33K - Open Int: 260K - Trend Grade: Neutral - From ATH: -8.7% (Rounded) Key Levels (Rounded - Think of these as ranges) - Long: 16105 - Mid: 15247 - Short: 14961 Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
CME_MINI:NQU2023
by mv3trader5
Short Dated Options to Deftly Manage Oil Market Shocks"Volatility gets you in the gut. When prices are jumping around, you feel different from when they are stable" quipped Peter L Bernstein, an American financial historian, investor, economist, and an educator. Crude oil prices are influenced by a variety of macro drivers. Oil market shocks are not rare events. They appear to recur at a tight frequency. From negative prices to sharp spikes in volatility, crude oil market participants "enjoy" daily free roller-coaster rides. Precisely for this reason, crude oil derivatives are among the most liquid and sophisticated markets globally. This paper delves specifically into weekly CME Crude Oil Weekly Options and is set out in three parts. First, what’s unique about short-dated options? Second, tools enabling investors to better navigate crude oil market dynamics. Third, a case study illustrating the usage of weekly crude oil options. PART 1: WHAT’S UNIQUE ABOUT CME CRUDE OIL WEEKLY OPTIONS? Macro announcements such as US CPI, China CPI, Fed rate decisions, Oil inventory changes and OPEC meetings drive oil price volatility. Sharp price movements can lead to premature stop-loss triggers. When prices gap up or gap down at open, stop orders perform poorly leading to substantial margin calls. Weekly options enable hedging against these risks with limited downside and substantial upside. Closer to expiration, options prices are sensitive to changes in the prices of the underlying. Small underlying price moves can have outsized value creation through short-dated options. Hedging with weekly options allows investors to enjoy large upside potential. Short duration vastly reduces the options premium burden. This high risk-reward ratio has made short-dated options popular among both buyers and sellers. The daily traded notional value of Zero-DTE options (Zero Days-To-Expiry, 0DTE) have grown to USD 1 Trillion. Among S&P 500 options, 0DTE options comprise 53% of the average daily volume (ADV), up from 19% a year ago. In 2020, CME launched Weekly WTI options with Friday expiry (LO1-5), offering robust, round-the-clock liquidity and enabling precise event exposure management at minimal cost. These weekly options are now the fastest growing energy products at CME with ADV growing 69% YoY with June 2023 ADV up 136% YoY. Building on rising demand, CME added weekly options expiring Monday and Wednesday. At any time, the four nearest weeks of each option are available for trading. Weekly options settle to the latest benchmark CL contract and like other CME WTI products, they are physically deliverable ensuring price integrity. Each weekly WTI options contract provides exposure to 1,000 barrels. Every USD 0.01 change per barrel change in WTI represents a P&L change of USD 10 in premium per contract. PART 2: EIGHT TOOLS TO BETTER NAVIGATE CRUDE OIL MARKET DYNAMICS Highlighted below are eight critical tools across TradingView and CME enabling investors to better navigate oil market dynamics. 1. OPEC+ Watch OPEC+ Watch charts the probability of different outcomes from OPEC+ meetings. Probabilities are derived from actual market data & represent a condensed consensus market view of forthcoming meetings. 2. News Flow TradingView’s News section collates the key market developments impacting crude oil. 3. Forward Curve TradingView maps crude oil prices across the forward curve exhibiting oil’s term structure. Augmenting the forward curve chart is a table CL contracts across various expiries with technical signals embedded in them enabling investors to spot calendar spread trading opportunities. 4. TradingView Scripts Supported by a vibrant community of script creators, TradingView has curated scripts catering to the specific needs of crude oil traders. OIL WTI/Brent Spread by MarcoValente: Shows the spread between WTI and Brent crude. This spread is growing in importance with growth in US oil exports. Seasonality Indicator by tradeforopp: Presents seasonal price trends along with key pivot points to guide traders. 5. Economic Calendars TradingView’s economic calendar highlights upcoming economic events segmented by dates and with countdown timers to help traders better manage their portfolios. Augmenting, TradingView’s calendar is CME’s Economic Events Analyzer which lists key events specifically impacting energy markets and highlights the relevant weekly options contract. 6. Options Expiration Calendar CME’s Options Expiration Calendar is a comprehensive yet condensed view of upcoming expiration dates of WTI options, even those that are not listed yet. 7. Daily/Weekly Options Report CME’s Daily/Weekly Options Report profiles volumes and OI by strike price for weekly options supplying key stats such as Put/Call ratio and key strike levels at a glance. 8. Strategy Simulator CME’s strategy simulator allows investors to simulate diverse options strategies. Selecting the relevant instruments and adding each component of the overall position automatically calculates the payoff while still allowing modification of key statistics such as volatility based on user inputs. The below shows the payoff of an ATM straddle position for the upcoming Monday weekly option. It also allows simulating various market conditions. Selecting price trends such as up fast, up slow, flat, down slow, down fast can simulate the changes in P&L. PART 3: ILLUSTRATING USAGE OF WEEKLY CRUDE OIL OPTIONS Why does CME list weekly options expiring on Monday, Wednesday, and Friday? Each of these address specific macro events. OPEC meeting outcomes are typically announced over the weekend leading to gaps in prices on Monday. EIA weekly crude oil inventory data are released on Wednesdays. Key US economic data such as CPI and Non-farm payrolls are released on Fridays. Use Case for Options expiring on Monday These can be used to hedge against downside risk associated with weekend events. For instance, in April, OPEC+ announced major supply cuts at their meeting on Sunday. This led to WTI price spiking 4% at market open. This can lead to “gap risk.” Gap risk refers to the risk that markets may open sharply above or below their previous close. Since, price never passes the levels in between, stop loss orders fail to trigger at set levels resulting in more-than-anticipated realised losses. Such gap risks from weekend news can be managed through Monday weekly options which provides a predictable and resilient payoff with limited downside risk. Use Case for Options expiring on Wednesday Oil inventory reports by EIA (U.S. Energy Information Administration) and API (American Petroleum Institute) are released every week on Tuesday and Wednesday respectively. Major misses/beats against expectations for these releases can result in large price moves. Wednesday options come in handy to better manage volatility stemming from these shocks or surprises. Weekly options provide superior ROI on small moves when compared to futures. Favourable price moves deliver larger payoffs from position in weekly options than futures and shorter expiries allow for much lower premium than monthly options. Illustrating with Back tested Results On June 14th, Crude price fell by 1.7% (USD 1.2) to USD 68.7/barrel upon release of inventory data that showed a larger than expected inventory build-up. In the lead up to this data release, a crude oil participant could either (a) Short Crude Oil Futures, or (b) Long Weekly Crude Oil Put Option. Summary outcomes from these two strategies are tabulated and charted below. The results speak for themselves. Short dated long put option is capital efficient, prudent, and credible as a risk management tool. That said, participants must evaluate the risk return profile taking into consideration market liquidity and volatility levels, among others, when choosing between instruments. KEY TAKEAWAYS In summary, 1) Weekly Options can be cleverly deployed to hedge against shocks in oil markets. 2) TradingView & CME provide a rich suite of tools to deftly navigate the oil market dynamics. 3) Weekly options expiring on (a) Monday helps manoeuvre developments over the weekend, (b) Wednesday helps to manage inventory data linked shocks, and (c) Friday enables investors to trade and hedge around key US economic data. MARKET DATA CME Real-time Market Data helps identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com DISCLAIMER This case study is for educational purposes only and does not constitute investment recommendations or advice. Nor are they used to promote any specific products, or services. Trading or investment ideas cited here are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management or trading under the market scenarios being discussed. Please read the FULL DISCLAIMER the link to which is provided in our profile description.
NYMEX:CL1!Education
by mintdotfinance
6