Back to the Futures

BlackBox Futures

Back to the Futures


You may have noticed unbridled bullish hope over the weekend after last week’s wild ride. Some were even convinced that the bottom was in. Alas, this week continued proving that the market is its own beast and we can only observe and attempt to wrest probability to our side. Monday proceeded relatively strong until afterhours suffered massive drops across tech, indices, and various stocks fell after SNAP lost 30% of its value, pulling down Facebook and stocks across the board. With continued worry and speculation regarding capitulation and the bottom, the week featured a slow rise with a significant rally on Thursday. After hours held strong, Friday opened with upward momentum with a melt up all day, and the week ended very green with the SPY ETF at $415.38.


Again, this week featured legitimate profiting opportunities with trading. Our trading rooms are featuring new focal points as the environment shifts and new traders join our ranks. One example is that a lot of our traders seem to be focusing on SPX. Sometimes seen as the “big brother of SPY,” this S&P pm settled index is roughly ten times SPY. So that can require more capital to place trades; however, a lot of our traders are learning one of our moderator’s system for entering great SPX trades with a good risk/reward. There are also ODTEs every trading day, tax advantages, fewer commission costs, and other benefits to trading SPX. BlackBoxStocks will soon offer a class on trading SPX options.

Another thing that some of our moderators and traders are getting into these days is trading futures, specifically trading /es and /mes (these are the S&P 500 E-mini Futures and the Micro E-Mini S&P 500 Index Futures, respectively). There has always been a focus on futures in some of our more advanced trading rooms; however, there is a noticeable uptick of futures discussion (again, specifically /es and /mes). Traders have reported enjoying trading /es and /mes for many reasons: there are no greeks at work (specifically theta), there is no wash sale rule, they can be traded 24 hours a day, five days a week, it is only one chart to watch, and they are cash settled (so there is no danger of having to take possession of a physical good as is the case with some futures trading). As a result, many of our traders are looking to /es trading to increase their trading tools. However, be aware that there are also downsides inherent in /es and /mes trading that do not apply to options. For example, fees and commissions can be high (very high depending on the broker), you must be aware of and understand maintenance margin amounts (which can be significant), and there is no defined risk. It is possible to lose more than your original investment. These are all significant, and futures trading is only for experienced traders. Be sure to educate yourself before trading any new type of commodity.


Puts, calls, buying, writing, commons, futures, crypto and more…there is something for everyone in the market…and BlackBoxStocks has moderators and instructors who specialize in it all. We don’t know if this week has been a relief bounce of if the bottom is in. However, regardless if the market is up or down, you can stay green!