(Trading) Futures & Options Trader Magazine May 2007.pdf

Strategies, analysis, and news for futures and options traders.
May 2007 • Volume 1, Issue 2
FUTURES TRADING
SYSTEM LAB:
ADX breakout p. 28
IMPLEMENTING
an option
repair strategy p. 22
COOKING WITH GAS:
Seasonality in the
gasoline futures
spread p. 8
COVERED CALLS: OPTION ELECTRONIC
How to make the STRATEGY LAB: TRADING
most of winning Directional calendar boosts NYBOT
trades p. 16 spreads p. 32 softs p. 36
CONTENTS
Futures Trading System Lab . . . . . . . .28
ADX Consolidation Breakout 1
By Volker Knapp
Options Trading System Lab . . . . . . . .32
Directional calendar
By Steve Lentz and Jim Graham
Contributors . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Letters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Trading Strategies
Gasoline seasonal spread . . . . . . . . . . . . . .8
A futures spread that allows you to play seasonal
trends in gasoline futures.
By Keith Schap
Options News
Repairing a losing covered call . . . . . . .16 Move to ICE heats up NYBOT softs . . . .34
These repair strategies help minimize a covered The availability of electronic trading for the “soft”
call’s losses — and can occasionally even turn a products traded at the New York Board of Trade
loser into a winner. has sparked a volume increase in the products.
By Marc Allaire
ICE challenges NYMEX on Middle East
Squeezing extra profits crude contract
from long calls . . . . . . . . . . . . . . . . . . . . . . .22 The IntercontinentalExchange plans to trade
Before selling a winning long call, consider Middle East crude oil contracts before rival New
converting it into a spread to enhance its poten- York Mercantile Exchange.
tial profit.
By Philip Budwick CBOT battle cools down . . . . . . . . . . . . . .36
The Chicago Board of Trade continues to weigh
offers from the Chicago Mercantile Exchange and
the IntercontinentalExchange.
NYMEX lists uranium futures . . . . . . . .