Morning Straddle Run - July 24, 2013 by Dan Burke +1 312. 957.8248 email: dburke@walshtrading 9am June home sales expected +0.9% to 481,000 GRAINS The December Corn is currently 483-2 last. The Dec 480 corn straddle (121 days to expiration) is showing a last value of 57-4. The implied volatility is off from yesterday as we continue to see more downside. I think these are wonderful weather markets to play downside. The November Soybeans are trading 1261 last. The Nov 1280 bean straddle (93 days to expiration) is showing a last trade of 108. The implied volatility is steady as prices move sideways. I think the calls wouldn’t be prudent. The September Wheat is resting 656-2 last. The Sept 655 wheat straddle (30 days to expiration) is showing a last value of 35-6. The implied volatility is slightly lower on steady price action to the downside. I like putside. STOCK INDEX FUTURES The Emini S&P 500 is currently 1692.75 last. The August 1690 straddle (23 days to expiration) is showing a last trade of 37.25. The implied volatility is off as we trade upward with solid pressure. I believe the best opportunity is the 1690 calls for 20. CURRENCY FUTURES The September US$$Index trades last at 82.285. This is up from yesterday. The September Yen is resting at 9974 last. The August Yen 9950 straddle (16 days to expiration) is showing a last of 206. The implied volatility is off from yesterday as prices move lower. The Yen’s price action seems to be looking for the next support level. I like the downside. The September Euro is resting at 1.3216 last. The August Euro 13200 straddle (16 days to expiration) is showing a last of 169. The implied volatility is down as we remain sideways at the 132 area. I feel the Euro is good for the strangle. INTEREST RATE MARKET FUTURES The September T-Bonds are resting at 134-02 last. The August T-Bond 134 straddle (2 days to expiration) is showing a last of 59. The implied volatility is bid from yesterday as we unexpectedly take back to the downside. I think the bonds have eyes for 132. GOLD The August Gold is currently 1335.2 last. The August 1335 Gold straddle (1 day to expiration) is trading at 16.5 last. The implied volatility is down from yesterday and still waiting on the data to be released. Beware, I think the demand is here to weed out the shorts. For more market information, Dan can be reached at 1.312.957.8248 or via e-mail at dburke@walshtrading. RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING. THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT. WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The views and opinions expressed in this letter are those of the author and do not reflect the views of Walsh Trading Inc. or its staff. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to Walsh Trading Inc. Copyright © Walsh Trading Inc. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Support refers to an area on a chart where buy orders may be clustered. Resistance is an area where there may be sell orders. Fibonacci retracement is named after a 12th century Italian mathematician and based on the theory that prices rise or fall by predictable amounts after reaching a high or low.
Posted on: Wed, 24 Jul 2013 16:37:40 +0000
Trending Topics
© 2015