Individual Futures Options Solutions

E-Mini S&P 500 futures.

In the area of the top there was a purchase of today's (with expiration today) put with a strike of 4000 for 1.00 points ($50). In the first “poke” down, the option cost 20.00 points ($1,000), that is 20-times of premium paid were made. At the beginning of the second “poke” down, the option cost 34.00 points ($1,700), i.e made 34-times of premium paid.

"Stop Loss". Corn futures.

There is a short position in a futures (sold futures). The stop loss level was chosen above the high of 685-0 (red circle). If there was a stop order at 685-0, it would have been triggered (blue area). At the same time, in the end, the market fell and would have brought profit. But the trader was left without a position. Buying a call option with a strike price of 685-0 with sufficient time until expiration would guarantee protection above the 685-0 level, while leaving the position open to profit in the event of a fall. The trade-off for staying in the position is paying an option premium, which would increase losses above the 685-0 level if the market closed above that level on the expiration date.

"Gap". Oil futures.

There is a short position in a futures (sold futures). The stop order is at 76.00, limiting potential losses. However, significant news came out over the weekend and the market opened with a “gap” and the stop order was executed at a price of 80.10, realizing additional losses. If, instead of a stop order at 76.00, a call option with a strike price of 76.00 had been purchased, it would have guaranteed the position to be closed at 76.00. In this case, the maximum additional loss would be limited only by the option premium, which would be significantly better compared to an executed stop order at a price of 80.10. Moreover, since using an option as a “stop loss” there is no need to close the position, there was still a chance (if there was enough time before the option expiration) to wait for the fall and realize the profit as a result.

Oil futures.

Current price 71.00. The forecast period is 3 months. The break-even range is 59.70 and above. If you just buy futures, the break-even range is 71.00 and above.

Futures sul gas naturale.

Previsione: I futures non chiuderanno al di sotto di 2,200 oggi. Si acquista un contratto di questo tipo e si pagano 10,75 dollari. Il pagamento massimo previsto dal contratto è di 20,00 dollari. Se il mercato chiude al di sopra di 2,200, il contratto pagherà 20,00 dollari, il che significa 9,25 dollari di profitto (20,00 ricevuti meno 10,75 dollari pagati).

Gold Futures.

Forecast: Futures will rise. You can buy a call with a strike of 2060 at a price of 21.50. Moreover, on the expiration date, profitability will be achieved only at a level above 2081.50. Below these levels there will be a loss.

By adding several other options, you can get the following configuration: The price at which losses begin is moved below 1990.00. Trade-off - losses increase below 1990.00 compared to the limited losses of 21.50 points in the situation of just buying a call.

Gold futures.

A long position was opened at 2050.00 (red circle). An option combination has been added at the price (green circle). Which made it possible to reduce the breakeven price to 2022.10 on the options expiration date without increasing the downside risk. Compromise - there is no profit potential above the price of 2022.10.

Future sullo zucchero.

Quando i prezzi si trovano nel rettangolo verde, si identifica una tendenza al rialzo. Il punto di ingresso viene determinato al livello del rettangolo blu. Viene venduta una put con strike al livello del rettangolo blu (1700). Se alla data di scadenza il prezzo fosse inferiore a 1700, la put verrebbe eseguita sul future e verrebbe aperta una posizione lunga (acquisto del future) a 1700. In questo caso, il prezzo di acquisto sarebbe migliorato dell'importo del premio ricevuto dalla vendita della put. Nella situazione reale, il mercato non ha raggiunto i livelli dello strike. L'unico profitto è stato il premio della put. Non è così offensivo rispetto alla situazione in cui ci sarebbe un ordine di acquisto di future al livello di 1700. È anche possibile che il prezzo scenda al di sotto dello strike e poi torni al di sopra dello strike alla data di scadenza dell'opzione. In questo caso, non ci sarà alcuna posizione nei futures e si guadagnerà solo il premio.

The average daily price range for the last month exceeds the daily ranges for the last two days. Short-term options are purchased, which can bring profit if the daily price range increases.