Fed Funds December 2017 & 3 month December 2015

Two simple trades to capture the move higher is short term rates

Fed funds between now and 29 December 2017

1) Click here for what the Fed funds rate is and how it’s set
2) Click here for the latest disclosed Fed guidance on the Fed funds rate
3) Trading this rate higher requires a short position
4) To convert the contract price into rate it represents take 100.00 – contract price = rate
5) Each 0.01 change in contract price = $41.67

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

7) To experiment with any potential outcome for this trade

8) Click here to open the December 2017 Fed Funds risk reward spreadsheet (no hedge) when it opens enable it.

9) If this rate goes to and stays at 0.00% = –$88,246 through 29 December 2017

10) Click here for December 2017 (ZQZ17) quotes
11) Enter any contract price in cell B-2
12) The rate the contract price represents shows in C-2
13) Initial account balance shows in D-2
14) Net profit/loss E-2
15) Position liquidation value F-2

16) Net gain at the profit objective 96.75 = +$114,869

17) Click here for December 2017 (ZQZ17) quotes
18) Enter any contract price in cell B-2
19) The rate the contract price represents shows in C-2
20) Initial account balance shows in D-2
21) Net profit/loss E-2
22) Position liquidation value F-2

23) Trading the 3 month rate using a hedged position

24) Click here for what this rate is and how it’s set
25) Click here for the latest disclosed Fed guidance on short term rates
26) Trading this rate higher requires a short position
27) To convert the contract price into rate it represents take 100.00 – contract price = rate
28) Each 0.01 change in contract price = $25.00

29) Current position short 99.50 GEZ15, contact value = $1,250, objective 98.75, contact value = $3,125

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

32) Click here to open the 3 Month Dec 2015 hedged risk reward spreadsheet, when it opens enable it.

33) If this rate goes to and stays at 0.00% = -$20,312.50
34) Click here for December 2015 (GEZ15) quotes
35) Enter a contract price of 100.00 in cell B-3
36) Rate the contact price represents shows in cell C-2
37) Initial investment shows in cell D-2
38) Net profit or loss shows in cell E-2
39) Net liquidation value shows in cell F-2

40) If this rate goes to the objective = +$112,500.00

41) Click here for December 2015 (GEZ15) quotes
42) Enter a contract price of 98.75 in cell B-3
43) Rate the contact price represents shows in cell C-2
44) Initial investment shows in cell D-2
45) Net profit or loss shows in cell E-2
46) Net liquidation value shows in cell F-2

If you have any questions contact me

Good Trading,
Peter Knight

Contact details

 

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RISK DISCLOSURE STATEMENT

PROGRAM AVAILABILITY IS DEPENDENT ON YOUR COUNTRY OF RESIDENCY AND FINANCIAL STATUS

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.