Wednesday, September 16, 2009

S&P 500 E-Mini futures options..

For many years we have managed a few large hedge fund type accounts via selling options on the S&P 500 futures index. These accounts have always seen alot of activity in trading but we always had questions from our regular subscribers about why we didn't have outright sell trades for them. The main reason was because we are very active in them and do receive a profit commission for trading. The second reason was because the account size needed to trade even one contract was very high thus making it impossible for many to trade.

The CME developed the S&P 500 futures e-mini contract in 1999 and made it completely electronic to trade. With it came options and very low margin requirements so after we tested it we started the S&P 500 futures Option E-mini trading program selling the E-mini Options outright to mimic our credit spread trades with the new index. This program is very much like the "Ultra Conservative" trade strategy but you just take out the buy side of the trade. To place a trade at these levels we need to see a possible success level of 95% plus. The benefit of this type of trading is that you can make more trades as the premiums go down or trade both the upside and downside at the same time with only one margin requirement! There are so many options out there that expire worthless it's almost a tragedy to miss out on selling them as long as you do it with great safety and use stops...

The Agora Outlook is a very valuable tool in better equipping you as an informed investor. ( Note: In order to receive the trade ALERTS or up to the minute news, you need to provide us with an e-mail address.) If you have any questions or comments about this type of trading please don't hesitate to contact us as we can send you out an e-mail letter that covers the above trading methods in more detail.....

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