Energy Futures Update

News & commentary on Energy Futures markets including Crude Oil WTI, Crude Oil Brent, Heating Oil, Gasoline RBOB, Natural Gas & more.

Energy Futures Update is a blog dedicated to bringing updates, news and commentary on energy futures markets including Crude Oil WTI, Crude Oil Brent, Heating Oil, Gasoline RBOB, Natural Gas and more.

This blog is brought to you by Zaner Group, one of America's oldest family-owned and operated futures and forex brokers.  Zaner provides a wide range of services from research and recommendations to the execution of all your futures needs.

We invite you to join the thousands of other Zaner clients that have enjoyed our services.  Click here to learn how to open an account with Zaner.

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.


Posted on 7/20/2016 6:51:25 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

 


Posted on 7/20/2016 6:51:13 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

 


Crude Options Play: Crude Oil, Enough Is A Lot

Posted on 7/18/2016 7:57:18 PM by: Matt McKinney, Market Strategist @ Zaner. 312-277-0115.

Direct-312-277-0115, http://www.mmckinneyfutures.com/

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.

 

Crude Options Play: Crude Oil, Enough Is A Lot

When It Comes To Crude Oil Producers Around The World, They All Want Their Fair Share.

 

Fundamentally, if any market needed regulation in production this one would be it. Whether it be Russia, Canada, the U.S. or OPEC, Crude Oil producers around the globe continue to pump and pump and pump. They all want their market share of $40/barrel Crude Oil.

There is talk of no storage capacity in China. There is talk of tankers stacked up in Gulf of Mexico. There is satellite imagery on sites like Zerohedge.com of tankers congested off of the cost of Singapore. Despite Goldman claiming the Big Glut is over, OPEC nations at one point were going to freeze output at maximum capacity!

While weekly inventory reports have claimed draw downs in supply for the last several weeks, its going to take a ton of demand to make a difference when producers continue drill. Its going to take one heck of a disruption to even begin to put a dent in supplies in my opinion.

Technically, on the charts below I have placed my favorite technical indicators. I call this combination of indicators the"10/20/50/BB/ Trend Finder" strategy. They are the10 day Simple Moving Average (SMA, red line), the 20 day Simple Moving Average (SMA, green line), and the 50 day Simple Moving Average (SMA, royal blue line). I have also added the Bollinger Bands (BBs, light blue shaded area) and Candlesticks (red and green bars with the wicks).

 

On the daily chart above the market is n a SUPER TREND down which is the strongest form of a technical trend that my indicators can show me. This occurs when the 10 day SMA crosses down and under the 20 day SMA as both indicators point lower on fairly sharp angles while the market uses the 10 day as its top side resistance.

 

On the weekly chart above the market is holding at the support of the 20 period SMA.

 

On the monthly chart above the market is a downward trend using the 20 period SMA as its top side resistance. 

I figured this out by placing my favorite indicators on the charts and studying them 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 about80% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 18 years. So if I'm using it then maybe my readers should check it out.Yes?

 

 

Crude Option Play:

A potential strategy here could be to buy Bear Put Spreads and in a 3 to 1 ratio buy a call for a hedge. Another potential strategy could be to sell deep out of the money Calls with a specific exit strategy. For exact details on a potential strategy including risk, months, expiration dates, strike prices, and number of positions feel free to contact me at 312-277-0115 or mmckinney@zaner.com.

CME Options On Futures: The Basics: http://www.zaner.com/offers/?page=9&ap=mmckinne

 

FREE QUOTE- "Opportunity is missed by most people because it's dressed in overalls and looks like work." -Thomas Edison

 

 

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 COMMISSIONS.


Posted on 7/13/2016 7:12:30 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

 


Posted on 7/6/2016 6:37:14 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

 


Posted on 6/29/2016 7:30:14 AM by: Rick Alexander, VP, Trading @ Zaner. 312-277-0107.

 


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