Daily Summary – Monday Mar. 14, 2022

Calls are for the ESH22 weekly options expiring Mon. Mar. 14

Transcript

This is rollover week, with ES traders gradually switching from the March contract (ESH22) to the June contract (ESM22) before the ESH expires on Friday.

Option traders are making the same switch, but more slowly. The options volume on the June contract is very light, but the volume of the March contract is still close to normal.

So while our members trading the futures are concentrating on the June contract, option traders are still watching March, although Nat has stopped making recommendations in the trade room on the ESH options.

However on Sunday afternoon she posted an overnight recommendation for the March futures expiring Monday that was right on the money and very profitable.

 The call

overnight if ESH22 moves into 4260 area or high, buy 4200 and 4175 puts could work for some profit. if overnight market opens, and ES directly runs down towards 4100 area to react external bad news, looking for scalping buy 4180 to 4150 calls for short-period trades.

The overnight trading on ESH22 stayed above 4220 and spiked briefly to 4254. The 4200Put was trading in the $10-$15 range, which is more expensive than we like.

After the open the futures ran up to about 4250 and the option briefly dropped below $5, then traded in the $6-$8 range for about an hour.

Anyone who grabbed that entry watched the options move up above $35 within a couple of hours, for a potential profit of roughly $1200-$1500. They closed well in the money.

Candlesticks are ESH22 Mar. 14. Thin OHLC bars are 4200Put. Right axis is ES price; left axis is option price.

 

 

 

 

 

 

 

 

The trade on the 4175 Put was almost as good. The best entry was below $2, or less than $100 maximum at risk; the best exit was around $17, for a potential profit of about $1250.