In This Issue
Reports and Expiration Notices
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Our primary goal is your financial success! Here are some techniques used in options trading:
Important to remember:
| Option Spread Strategy | Description | Reason to use | When to use |
| Buy a call | Strongest bullish option position. | Loss limited to premium. | Undervalued option with volatility increasing. |
| Sell a put | Neutral bullish option position. | Profit limited to debit. | Small debit, bullish market. |
| Vertical Bull Calls | Buy call, sell call of higher strike price. | Loss limited to debit. | Small debit, bullish market. |
| Vertical Bull Puts | Buy put, sell put of higher strike price. | Loss limited to price difference. | Large credit, bullish market. |
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June U.S. Treasury Bond futures at the Chicago Board of Trade are presently in a six-week-old downtrend on the daily bar chart. Prices earlier this week hit a fresh nearly two-month low. Bears have the near-term technical advantage at present. Their next downside price objective is pushing and closing prices below strong technical support at this week's low of 110 even. Below that lies more strong chart support at the January low of 109 5/32. "The trend is your friend," says the tried and true trading adage. Until the present downtrend in June T-Bonds is negated (meaning a move back above trend-line resistance at 111 18/32), the bears will enjoy the near-term technical advantage. However, there is an early technical clue that June bonds are close to a near-term market bottom. The Moving Average Convergence Divergence (MACD) indicator overlaid on the daily bar chart is presently in a posture that is similar to its posture in late January. At that time the bond market did put in a bottom and worked higher into late February.
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at Jim Wyckoff
Disclaimer:
Trading commodity futures and options involves substantial risk of loss. The recommendations contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results. This is not a solicitation of any order to buy or sell, but a current futures market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!
Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 04/12 Thu |
7:30 AM CDT - Export & Import Prices(Mar)
7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
|
| 04/13 Fri |
7:30 AM CDT - PPI & Core PPI(Mar) 7:30 AM CDT - Trade Balance(Feb) 9:00 AM CDT - Mich Sentiment-Prel(Apr) |
LT: Apr Eurodollar Options(CME)
May Cotton Options(NYBOT) May Coffee Options(NYBOT) May Sugar Options(NYBOT) |
| 04/16 Mon |
7:30 AM CDT - NOPA Crush
7:30 AM CDT - NY Empire State Index(Apr) 7:30 AM CDT - Retail Sales(Mar) 8:00 AM CDT - Net Foreign Purchases(Feb) 9:00 AM CDT - Business Inventories(Feb) |
LT: Apr Lean Hogs(CME)
Apr LIBOR(CME) Apr Eurodollar(CME) Apr GSCI(CME) Apr Lean Hog Options(CME) Apr LIBOR Options(CME) |
| 04/17 Tue |
7:30 AM CDT - Housing Starts & Bldg Permits(Mar) 7:30 AM CDT - CPI & Core CPI(Mar) 8:15 AM CDT - Indus Prod. & Capacity Util(Mar) |
FN: May Cocoa(NYBOT)
LT: May Crude Oil Options(NYM) |
| 04/18 Wed |
9:30 AM CDT - API & DOE Energy Stats
|
LT: May Platinum Options(NYM)
|
| 04/19 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:00 AM CDT - Leading Indicators(Mar) 9:30 AM CDT - EIA Gas Storage 11:00 AM CDT - Philadelphia Fed(Apr) 3:30 PM CDT - Money Supply |
|
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgment in trading!