Daily Summary – Monday, Mar. 7, 2022

Calls on the ES weekly options expiring Monday, Mar. 7

Transcript

Overnight Sunday Nat recommended buying a 4350 Call. During the premarket session Monday she recommended a 4265 Put.

Around 3a.m. EST the 4350 Call was trading around $2.50. She bought one and covered almost immediately for a small ($100 per contract) profit.

The Call option reached $10 at the open in the morning session before it dumped into the close, so there was some money left on the table.

During the day session

At 9:25 a.m. EST Nat recommended buy a 4265 Put.

At the time the Put was trading in the $6-$8 range. But the market started to tank immediately after the open and continued down without stopping for the rest of the day, and the Put quickly gained value.

ES e-mini Mar. 7, 2022

The Put went up in value as the futures contract went down. Before the open it traded as low as $5.75. It traded up to $40 before the close.

Results of the two trades:

Overnight trade: max risk, $125; max profit $375.
Day session trade: max risk, $300-$500; max profit $1500-$1700.

Those figures represent the maximum potential profit or loss. Actual risk and actual profit will be less, and perhaps much less, depending on how the trader executed the trade. But the difference between the small amount of money at risk and the potential profit is remarkable.

ESH22 4265 Put Mar. 7, 2022