Futures (Cedar Falls, IA)

A monthly trade magazine that presents news, analysis and strategies to inform and educate traders in futures, options and derivatives markets. Provides analysis of global markets and information on price movement, volatility, and future trends. Articles

Articles from Vol. 37, No. 6, June

A Black-Scholes Peek at Futures Prices
The Black-Scholes option pricing model gave the world of finance a way to calculate the fair price of an option contract. However, once you realize the full potential of the model and others like it, you then have a powerful tool for analyzing many other...
CFTC Gets an Earful
The Commodity Futures Trading Commission (CFTC) got an earful from hedgers during an April forum in Washington D.C. to collect information on price discovery and record Spikes in volatility in the agriculture markets. Producers didn't hold back, urging...
Decaffeinating Portfolios Via Volatility
It may seem counter-intuitive, but volatility can actually be a stabilizing force for your portfolio. Volatility-based strategies are typically non-correlated to traditional techniques and often result in smoother equity growth if properly employed....
Decaffeinating Portfolios Via Volatility; It May Seem Counter-Intuitive, but Volatility Can Actually Be a Stabilizing Force for Your Portfolio. Volatility-Based Strategies Are Typically Non-Correlated to Traditional Techniques and Often Result in Smoother Equity Growth If Properly Employed. Here, We Exploit Volatility Trends in Starbucks
Most traders consider sophisticated option strategies complex financial instruments, designed for pros only. As such, these techniques are often overlooked as a way to tap changes in volatility as a source of returns. However, volatility-oriented trading...
Don't Go against the Grains
Drought, food riots and rationing and the influx of long-only funds have set fire to the once sleepy grain markets. Here's a fresh look at the grains and the fundamental factors that are causing grains to double and triple in value. As we enter...
Don't Go against the Grains
Drought, food riots and rationing and the influx of long-only funds have set fire to the once sleepy grain markets. Here's a fresh look at the grains and the fundamental factors that are causing grains to double and triple in value.As we enter the growing...
ECX Flying High with Offsets
One of the biggest stories in clearing and settlement last year was the impact on the European Climate Exchange (ECX) of ICE's decision to leave LCH.CIearnet and start up its own clearinghouse, effective July this year.The decision sparked a row between...
European Clearing: The Tangled Web
The European Union's move towards "horizontal" clearing and settlement of equities is now officially in reverse, with Euronext.Liffe and ICE drifting towards vertical silos. Here's a look at the latest changes sweeping the European clearing landscape....
Food for Thought
EDITOR'S NOTEIt's an awfully cold government that won't allow relief supplies to get to its citizens in need, especially when thousands already are dead and many more could expire due to an inability to get food, clean water or even shelter. The cyclone...
I A Black-Scholes Peek at Futures Prices; the Black-Scholes Option Pricing Model Gave the World of Finance a Way to Calculate the Fair Price of an Option Contract. However, Once You Realize the Full Potential of the Model and Others like If, You Then Have a Powerful Tool for Analyzing Many Other Aspects of Market Dynamics
For futures contracts, option-pricing models provide a significant source of information on the market consensus regarding price movements until expiry. Given the quantity of price information available through option price data--and the relatively...
I Ins and Outs of Commodity Options: The Record Volatility in Today's Agricultural Markets Is Threatening to Take the Small Retail Trader out of the Game. Fortunately, There's a Way to Maintain Your Opportunity While Capping Your Risk through the Use of Commodity Options
Due to strong demand, rising fuel and input costs and restrictions on world exports, agriculture markets have experienced record volatility in recent months. One way to profit from price volatility while limiting your risk is through the use of options....
India, UN Send Mixed Signals
As surging food prices spark riots in parts of the developing world, mixed signals are emerging from both the United Nations and the Indian government on the role of markets in the pricing and distribution of food. India, for example, is in the...
Ins and Outs of Commodity Options
The record volatility in today's agricultural markets is threatening to take the small retail trader out of the game. Fortunately, there's a way to maintain your opportunity while capping your risk through the use of commodity options.Due to strong demand,...
International News
LIBOR LURCHThe validity of the London Interbank Offered Rate (LIBOR), to which hundreds of trillions of dollars in loans are pegged around the world, is being investigated by the British Bankers' Association after several banks complained about the way...
I Swinging in E-Mini NASDAQ Futures: If You're Looking for Frequent Trade Opportunities, One of the Most Active Approaches Is Seeking out Short-Term (Five-To 10-Minute) Price Swings in the E-Mini Nasdaq. Here, We Quantify the Scope of These Moves and Discuss How a Nimble Trader Can Use Them to Profit
If you have the ability and necessary technology to pull the trigger quickly, some of the most profitable trading opportunities can be found in so-called swing trades. These trades capture intermediate moves within the prevailing trend for quick-hit...
Lake Shore Exec Takes a Powder
On April 24 the U.S. district court in Chicago entered a default judgment against Philip J. Baker and the companies he controlled, including Lake Shore Group of Companies Inc., 12 Lake Shore commodity pools and Hanford Investments Ltd. Baker has not...
LaPorte Asset Allocation System
Burlington Hall AssetManagement Inc.7072 Whitemarsh CircleBrandenton, Florida 34202www.laportesoft.com(941) 361-1161(866) 402-3364 fax$4,600 /YearLaPorte software is designed to help you select investment managers, including CTAs and hedge fund managers,...
Linn: Reaping Years of Experience
Gordon Linn started working in the cash grain business in Des Moines, Iowa and figured he would return there. But after coming to Chicago in the early 1970s to hedge for Lincoln Commodities, he found a new home. "I started a trading subsidiary for...
Meet the New Boss, Same As
After several tough years, trend followers again are earning outsized returns. Is this just a prelude to a massive letdown, or will trend following enter another golden age?It is an argument that has been going on as long as there have been trend followers...
New for Traders
EXCHANGESIntercontinental Exchange and globalCOAL will launch two new coal futures contracts at ICE Futures Europe, www.theice.comThe New York Mercantile Exchange introduced a certified emission reduction options contract. The contract will be priced...
Nymex Members Want More, More, More
It would take just 204 New York Mercantile Exchange (Nymex) members voting 'no' to kill the proposed merger with the CME Group, and several recent developments indicate that is increasingly likely. On April 25, a Nymex membership sold for $640,000,...
Putting the Russell on ICE
The Russell is in for a major shake-up in September when Russell 2000 (full and E-mini) contracts traded at CME Group go off the board and the only place to trade Russell 2000 futures will be the Intercontinental Exchange (ICE). It will be the most...
Reaping Profits with Regression Analysis
Regression channels and intermarket analysis are excellent tools for providing situational awareness of the markets. Here's a demonstration of how effective they can be in the grain markets.If you trade corn, you know the top chart shown in "Light on...
Reaping Profits with Regression Analysis: Regression Channels and Intermarket Analysis Are Excellent Tools for Providing Situational Awareness of the Markets. Here's a Demonstration of How Effective They Can Be in the Grain Markets
If you trade corn, you know the top chart shown in "Light on their feet" (right) quite well. The extent to which prices have moved during this six-month period has been historic in its scope. However, the lines on the chart might not be that familiar....
Software Review
LaPorte software is designed to help you select investment managers, including CTAs and hedge fund managers, by allowing you to review fund managers' track records. The software allows you to subset and rank investment managers by a variety of quantitative...
Soybean Corrections Offer Opportunity
Volatility is the buzzword for sellers of options on any market. Price volatility can create opportunities on both sides of the market and the investor who knows the underlying fundamentals will have the advantage in capitalizing on such volatility....
Swinging in E-Mini NASDAQ Futures
If you're looking for frequent trade opportunities, one of the most active approaches is seeking out short-term (five- to 10-minute) price swings in the E-mini Nasdaq. Here, we quantify the scope of these moves and discuss how a nimble trader can use...
Szczech Named CEO of RJO Futures
Larry Szczech was named CEO of RJO Futures and EVP of product strategy at R.J. O'Brien. He previously served as an advisor to private equity firms and was president of the client group at TD Ameritrade. "The futures market [offers] a unique opportunity...
The Geometry of Opportunity in Forex
Now that the Federal Reserve has lowered the Fed Funds rate to 2% currency pairs will be adjusting to a new set of expectations. In forex, money always seeks to gain an edge by resng in currencies that pay a differential in rates. It is a constant...
Timing Techniques for Commodity Futures Markets
Colin Alexander assumes the reader is new to futures trading, so he covers the basics at the onset. This is where I got my first inkling that this book was more than just another "milk-for-profit" rehash. Even the introductory chapters taught me things...
Trade Management: You Need a Plan
As a trader, you need to be nimble, not just in terms of getting in and getting out of the market, but in how you assess all aspects of your trading business as the environment evolves.Old ideas about trading have been lost in the wake of technological...
Trading Catalysts: How Events Move Markets and Create Trading Opportunities
Robert Webb's premise is that by analyzing past events and learning how markets reacted to them, investors and traders can reap rewards when future major events occur. Webb provides a detailed look at some recent major events and their impact on stock...