Option trading ideas volume report

It feels like Christmas in August! We opted to sell Euro calls today against our short puts to get back into a relatively neutral trade. The next FOMC meeting is still four weeks away, so there is plenty of room for things to change, but it seems a September rate hike is relatively unlikely. With all of this in mind, it might be worth unloading some risk where possible. On the other hand, chartists are pointing toward a potential key reversal. As mentioned in the previous newsletter, when earnings season arrives during a market dip it tends to be supportive. The euro soared on what is being described as hope for a Greek deal with the EU, but we see it as a good old fashioned short squeeze. Any large dips will likely prove to be buying opportunities. Crude and stock index futures moved together in lockstep; we saw the same action in early day session trade.

Did stock index futures and WTI crude just decouple? From a fundamental standpoint, it is difficult to be bullish Treasuries. Traders should be on their toes. Perhaps a timely release might not have experienced such a volatile market reaction. Whether you trade options or futures you will likely be pleased with the guidance provided by The Financial Futures Report. In the end, the news was relatively neutral to slightly bearish for stocks, but seems to have been enough to throw cold water on market volatility, which is a blessing in itself. In short, because this correction has been long and drawn out it seems much worse than it really is. As you probably know, when traders overcrowd a market it tends to be a precursor to a violent reversal. As commodity brokers, we take pride in offering free futures and options trading newsletters to DeCarley Trading clients.

If you have already enjoyed a trial of this futures trading newsletter, please open a commodity trading account with DeCarley Trading to continue to receive it. Seasonality is already factored into current prices, any references to such does not indicate future market action. If today was the end of the month, this would be the quietest October on record and it would also be the quietest month ever. Thus, strength in the euro has helped hold the stock market afloat. This is the second longest run of its kind in history. In our view, this offers a glimpse into the minds of investors; it is clear they are far from comfortable with the current environment. The dollar index plunged well below 93. When things get bad, they simply fabricate stability through money printing, legal restrictions on stock selling, currency market manipulation, implementing constructions projects with no real purpose, etc.

As is often the case with bubbles, sometimes they are only obvious after the fact. They also basically copy and pasted their policy statement from the last meeting. In our opinion, if the market was going to fall apart on the thought of another rate hike, it would have done it already. The markets know this. Trading volume continues to disappoint, and direction is lacking. This publication is offered exclusively to DeCarley Trading commodity brokerage clients, but can be obtained temporarily via a trial. The big news of the day was the Fed meeting.

Soon after, the second quarter earnings season will roll out. Nevertheless, large dips will probably be bought into. This should leave traders focused on earnings, which are projected to be relatively positive. However, it was the crude oil inventory report that garnered the largest reaction. In fact, it should eventually be bullish for stocks. Instead, investors have taken their stimulus actions as reason to panic. Further, a stronger dollar has helped to drag Treasuries higher. Others believe that technology, specifically online trading platforms developed over the last decade, that have brought mass speculation into the markets.

Further, lower rates in Australia should be a positive for the global markets overall. If you are serious about learning to trade futures, this is a must have! In any case, those that have traded crude oil futures know that volatility is par for the course. According to the minutes, most officials believe the stars are not quite aligned for the first rate hike in nearly a decade. If the market survives the next 10 days, it will beat the previous record. Small specs are getting squeezed out of ES futures contracts It is early, but October has been the least volatile month. Click here to see the latest press coverage, commodity educational articles, and trading videos by Carley Garner.

Keep an eye on the currency market, it could be ready to turn the corner! Further, it could be the source of more volatility so traders should be on their toes. We suspect this trend will continue well into the fall months. Although that might not sound like a big deal for most Americans, it translated into millions of dollars made and lost in the markets in the blink of an eye. Both crude oil and natural gas have fallen to levels of despair for energy producers. In other words, keep the risk small because there is just as much working in favor of Treasuries, as there is working against them. Last night the Chinese central bank reached into their bag of tricks, and pulled out one of the largest cash injections into their financial system in nearly 2 years to put the brakes on economic contraction. Numbers based on June contract! Buying into an overbought market after its posted a key reversal, is a difficult trade.

The way we see it, bonds and notes are worth a bearish position that can be categorized as a nibble. Similarly, commodities such as crude oil and copper have benefited from the change in currency valuation but might not fare so well if the euro finally succumbs to gravity. The March expiration last year was particularly brutal for those bulls that got a little greedy. The Financial Futures Report is a daily newsletter written by veteran commodity broker, Carley Garner, and provided to DeCarley Trading brokerage clients. Futures market volatility is abundant with payroll data and earnings around the corner. From grains, to energies, to currencies and, of course, the financials, there have been fortunes made and lost in the markets. DeCarley Trading reserves the right to terminate trial subscriptions at any time.

Hopefully, most of you are still enjoying the summer vacation. You might recall the fiasco of 2013 which occurred when the financial markets were informed that money printing stimulus was coming to a conclusion. DC, as usual, but scheduled economic news is thin. Pending home sales were a bullish surprise this morning. We think a better explanation for the selling was the sharp move in the currency markets. FREE Futures and Options Trading Newsletters The missing piece to the puzzle? The author, Carley Garner, is an experienced commodity broker with plenty of stories and insight to share. We have been noting the massive short positions speculators had accumulated in the Euro. We prefer to see what the market does with this level before making any bold predictions.

In our estimation, there are likely plenty more shorts in the euro to keep the overall trend higher. Investors and traders have grown complacent, and that is precisely the environment that breeds chaos. The euro will need to roll over for the ES to attract sellers. Of course, it is too early to suggest that is what is in store for the markets come October 31st, but it should at least offer some perspective. Nevertheless, here we are. Friday morning futures contract expiration. Overnight volatility blamed on a surprise Australian interest rate cut, and weak data in China but.

These are both major milestones, which were passed in volatile trade. Crude oil squeezed, and held, well into positive territory while the stock market remained under moderate pressure. The problem with oil market volatility is that it bleeds into the financial futures markets. DeCarley Trading futures brokerage clients, free of charge. The trend is only your friend until it ends. Our clients receive short option trading ideas in other markets such as gold, crude oil, corn, soybeans, Euro, Yen, and more. Each newsletter contains an honest and fresh perspective of the futures markets, along with actionable trading recommendations for futures and options traders. China, and an unexpected rate hike by central bankers in Australia. Conversely, a break above this level gives the bulls the momentum.

Based on the current celebration over the rate cut delay, it is reasonable to assume a temper tantrum when the inevitable day of reckoning finally arrives. Due to time constraints and our fiduciary duty to put clients first, the charts provided in this newsletter may not reflect the current session data. China is a communist country with few rules. In the meantime, the path of least resistance should be higher. With that said, it would be rare for the market to muster up momentum after a day like today, so some back and filling is in order. Our goal is to keep both futures, and options, traders on top of current events and market opportunities, while ensuring they fully understand the risks and rewards of commodity trading.

FOMC minutes released tomorrow afternoon could see a reaction. Ironically, the seasonal low for the dollar and peak for the euro is due this week. It is difficult to justify aggressive positions in either direction. Accordingly, it is generally a good idea to try to keep speculative bets on the small side. Naturally, the story of the day was the Fed. This tells us the bull is healthier, and stronger, than most are giving it credit for. China and crude oil are running the show in the financial futures markets.

Further, economies in oil rich areas such as Houston, and parts of New Mexico and Colorado, as well as the Bakken, are slumping significantly. Crude oil has seen the largest percentage move in over two decades. If you have already enjoyed a trial subscription, please open a trading account with DeCarley to continue receiving the newsletter. Beige Book on Wednesday afternoon. FOMC day, and stock prices reverted right back to where they started. Renewed concern over interest rate hikes has stock index futures reeling. Are we finally going to see the correlation between stocks and oil soften? Today we finally got it. Treasuries and gold are highly overextended despite the fact that equity market are hovering at relatively lofty levels. Not much has changed from yesterday; seasonals and technicals in the Treasury complex are mixed, and intermarket relationships are present but weak.

It will be difficult for the stock market to get much of anything going on the upside, without stability in the energy market. Federal Reserve meeting well over 10 minutes early. We are getting mixed signals; it is too soon to know if this is a bear market bounce, or something the bulls can hold on to. When done right these trades can take your account to the next level. This brings me to my next point, Price Bursts. They get sucked into holding an option on a stock that the market makers have way too much control of. It allows you to trade less, identify moves that will screw the market makers, avoid market maker games, and make big trades. Futures: Good for scalping, but you need an exchange seat to reduce commissions. Buying Specific Types of Options Specialized for Small Accounts: good for smaller accounts looking to make a quick and safe jump towards becoming a large account.

Once you have a large account, you can start trading for income. Most of the time people who buy options buy them at the wrong time, the wrong strike and the wrong price. But first, you need a large account, and no, no one is going to give it to you! Another example is in AutoZone, Inc. Now, this can also make it riskier for you to trade. Not all positions will explode after earnings or based on a news story. But first, you have to understand what to look for!

Yes, it is all about timing. Nor do I do this purely for fun or charity. So, where do you go from here? The publishers of this site cannot and does not assess, verify or guarantee the suitability or profitability of any particular investment. My hope is that if I know your struggles, then with my insights and experience, I can provide better solutions to them than you can get anywhere else. These are represented in stocks that have wider spreads and lower volume, which makes it harder for them to control. You can be more relaxed, less stressed, and create more free time. And even if they do make small gains, they are suckered into giving it all back to the market makers when they manipulate the stock in small ways. The risk of loss of money in trading stocks, ETFs, and index futures can be substantial.

With small accounts, because of the flexibility with liquidity you have the opportunity to make extraordinary gains. These are predictable companies with steady earnings and not very many surprises. You bear responsibility for your own investment research and decisions and should seek the advice of a qualified securities professional before making any investment. Wealthy option traders look for big moves, moves that will force the option to move many times over. You can take less risk, and make a great monthly income off a large account. This is another opportunity for me to mention that you should only be trading with money you can afford to lose.