4 Trade Ideas for the CME Group: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

CME Group, $CME, comes into the week approaching resistance in consolidation. The Bollinger Bands® have squeezed in, often a precursor to a move. The RSI is rising in the bullish zone with the MACD positive and moving higher. There is resistance at 282.50 and 285.50 then 290.80. Support lower is at 278.25 and 274. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 1.79%.

The company is expected to report earnings next on October 21st. The August options chain has biggest open interest at the 250 strike on the put side and the 290 strike on the call side. In the September chain it is biggest at the 260 put and 280 call. The October chain is just getting started and has low open interest. Finally, in the November chain, open interest is biggest at the 250 put and the 310 call strikes.

CME Group, Ticker: $CME

Trade Idea 1: Buy the stock on a move over 282.50 with a stop at 272.50.

Trade Idea 2: Buy the stock on a move over 282.50 and add a September 270/260 Put Spread ($3.55) while selling the October 300 Calls ($2.90).

Trade Idea 3: Buy the September/October 290 Call Calendar ($3.90) while selling the September 260 Put ($1.85).

Trade Idea 4: Buy the November 260/290/310 Call Spread Risk Reversal ($4.60).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the peak of earnings season and the FOMC meeting, saw equity markets continuing to show strength, making new highs.

Elsewhere, looked for Gold to continue to consolidate in its uptrend while Crude Oil drifts in consolidation. The US Dollar Index continues short term move to the downside at 3 year lows while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to move up to test the top of the broad consolidation area while Emerging Markets continue their short term uptrend.

The Volatility Index looks to continue in the normal range making life easier for equity markets to the upside. The charts of the SPY and QQQ continue to point to more strength on both timeframes as they continue to print new all-time highs. The IWM continues to make slower progress in its move higher. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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