Fed Funds 25K hedged October 2015

October 2015 25K hedged position trade

1) Click here for the spreadsheet

Maximum defined risk should this rate go to (-0.5000%) = -$9,917
If the rate moves up to Fed expectations for Oct 2015 (0.9100%) = +$45,083
If this rate goes back to it’s old high (contract low 1.2750%) = +$75,500

2) Click here to enlarge the rate, price, valuation chart below

Screenshot_185

To experiment with any potential outcome for this trade of follow it forward

3) Click here for a spreadsheet to monitor net profit or loss
4)  Click here for Exchange quotes

5) Enter any price in cell B-2
6) Net profit or loss will show in cell D-2
7) Net liquidation value shows in cell G-2

Fed’s disclosed levels between now and December 2017

8)   Oct 2015 = 0.9100% contract price = 99.0900, value = $3,972
9)   Dec 2015 = 1.1250%, contract price = 98.8750, value = $4,687
10) Dec 2016 = 2.5000%, contract price = 97.5000, value = $10,417
11) Dec 2017 = 3.7500%, contract price = 96.2500, value = $15,625

12) 1954-2014 Average = 5.1000%, contract price 94.9000, value = $22,250

13) Click here for confirmation on the Fed’s website, see the statements & videos for the last 4 meetings or  click here  for a 2 minute Yellen video and supporting links to the Fed’s site.

14) To set up your own trade

15) Click here  for a spreadsheet

16) Click here for quotes

17) Enter entry price  in E-13
18) E-14 enter # of contracts
19) I-14-18 enter option hedge strikes
20) J-14-18 enter call option prices (to hedge and define risk)
21) K-14-18 enter number of option contracts

Additional spreadsheets

Fed Funds

22)  What the Fed funds rate is and how it’s set
23)  Contract specifications
24)   Fed funds quotes all deliveries
25)  July 2015 25k no hedge

25)  July 2015 99.83 25K  cost average hedge
26)  July 2015 99.82 25K 87.50 hedge
27)  July 2015 10K 99.81/99.75 hedge
28)  Sep 2015 25k cost average hedge

29)  Oct 2015 25K cost average hedge
30)  Dec 2015 25K cost average hedge

3 Month

31) What the 3 month rate is and it’s history
32) Contract specifications
33) 3 Month Hedged Cost Average
34) 3 Month Rate September 2015 hedge
35) 3 Month Rate December 2015 hedge

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Click here for contact details

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RISK DISCLOSURE STATEMENT

PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. EXAMPLES OF HISTORIC PRICE MOVES OR EXTREME MARKET CONDITIONS ARE NOT MEANT TO IMPLY THAT SUCH MOVES OR CONDITIONS ARE COMMON OCCURRENCES OR ARE LIKELY TO OCCUR.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT.

IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADE PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF THE HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

BID/ASK SPREADS, BROKERAGE COMMISSION, CLEARING, EXCHANGE AND REGULATORY FEES WILL HAVE AN ADVERSE IMPACT ON THE NET OVERALL PERFORMANCE OF YOUR ACCOUNT. PRIOR TO MAKING A DECISION TO PARTICIPATE IN ANY INVESTMENT MAKE SURE YOU FULLY UNDERSTAND THE FEES ASSOCIATED WITH TRADING.

THE INFORMATION PROVIDED IN THIS REPORT CONTAINS RESEARCH, MARKET COMMENTARY AND TRADE RECOMMENDATIONS. YOU MAY BE SOLICITED FOR AN ACCOUNT BY ONE OF OUR REPRESENTATIVES OR EMPLOYEES. IT SHOULD BE KNOWN THAT THE REPRESENTATIVES OF OUR FIRM MAY TRADE FUTURES AND OPTIONS FOR THEIR OWN ACCOUNTS OR THOSE OF OTHERS. DUE TO VARIOUS FACTORS (SUCH AS MARGIN REQUIREMENTS, RISK FACTORS, TRADING OBJECTIVES, TRADING INSTRUCTIONS, TRADING STRATEGIES, AND OTHER FACTORS) SUCH TRADING MAY RESULT IN THE LIQUIDATION OR INITIATION OF FUTURES OR OPTIONS POSITIONS THAT DIFFER FROM THE OPINIONS AND RECOMMENDATIONS FOUND IN THIS REPORT.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. THE RISK OF LOSS IN TRADING FUTURES CONTRACTS OR COMMODITY OPTIONS CAN BE SUBSTANTIAL, AND THEREFORE INVESTORS SHOULD UNDERSTAND THE RISKS INVOLVED IN TAKING LEVERAGED POSITIONS AND MUST ASSUME RESPONSIBILITY FOR THE RISKS ASSOCIATED WITH SUCH INVESTMENTS AND FOR THEIR RESULTS.

YOU SHOULD CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES AND FINANCIAL RESOURCES

Published by

Asset Investment Management

Family Office, Advisors

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