TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.
Options play: Another Sym-Tri?
I can’t believe what I am seeing currently in the 6EH5 that could lead to a technical break out.
Fundamentally we of course we have a broke economy and a weak link in the chain of the euro-zone and that is Greece. Will they get a debt extension? Do they deserve one? Can you get blood from a turnip, well no. There are a lot of uncertainty when this matter is reported. One very good analysis was the idea that the stance that Greece holds is that if the EU doesn’t give Greece more time, the house of cards will tumble; Portugal, Italy, and Spain. Then there is the stance of the Germans that the weakest link in the chain right now is of course Greece, and the sooner we cut the weak link, the better.
The Subtle Trap of Trading: http://www.zaner.com/offers/?page=10&ap=mmckinne
Technically, I have added my favorite technical indicators to this chart below. They are the 9 (red line), 20 (green line), and the 50 (black line) day Simple Moving Averages or SMA’s. I have also added Bollinger Bands or BB’s (the royal blue lines ) and Candlesticks (the red and green bars with the candle stick wicks and on this daily chart each bar represents one day of trading). These few technical indicators can tell me as much as 8-10 different characteristics about the market at a quick glance or more 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.
The most exciting part of this chart is the Symmetrical Triangle (dark black lines) that I have added. They say typically, but not always, these formations go out the way they came in. Clearly the 6EH5 was in a downward trend when the “Sym-Tri” was formed. More importantly I have found that whichever side of the “Sym-Tri” is breeched, the market could trend in that direction for a long period of time.
I figured this out by placing my technicals on a daily chart and applying these indicators to the chart 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 80-85% of all my research from. That means I get most of both my technical and fundamental research from this web app and I am a veteran series 3 Broker of 15 years. So if I’m using it then maybe my readers should check it out. Yes?
Daily March euro currency chart
I believe that we are looking at a market that will breach the “Sym-Tri” in a big way so a 3 to 1 strategy could be a great play in my view. Maybe the 6E goes sideways for some time because they can’t make a quick decision in the euro-zone and they kick the can, I have potential option plays for that type of movement as well. However, I believe a break out will happen very soon.
For exact details on option strategies, on how to recognize these formations, option months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or email@example.com .
It is also important to note that I am not married to a market, but to technical trends and formations. I believe that we are on the verge of lots of upcoming trends and formations. So get in touch with me and I’ll show you what could be right around the corner in terms of technical formations and trending markets and how to trade them. There could be upcoming formations and trends in the grains, indices, financials, precious metals, softs and more.
CME Options On Futures: The Basics: http://www.zaner.com/offers/?page=9&ap=mmckinne
FREE QUOTE- “You will get, what you tolerate.”- Mike Dikta
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.