c06 JWBT016-Busby October 10, 2008 20:38 Printer: TBD
The Path of Least Resistance 81FIGURE 6.10 The 30-minute S&P 500 E-mini futures chart shows the “Fast Dance”
on April 25, 2008. The small horizontal arrow points to the entry point for the trade.
Once prices broke above the price bar that was formed beween 12:30 and 1:00PM
central time, prices moved up.1000 barrels of oil per contract will be delivered to Cushing, Oklahoma, for
pickup.
As for me, I am looking for a cheap way to fuel my auto but I am not
in the market for 1000 barrels of crude. Therefore, I trade the futures and
try to make the cash to pay those high prices at the pump. Options are also
traded at the NYMEX. There is a big oil contract and a mini contract. The
mini contract is valued at $500 per point and there are 40 ticks per point,
giving each tick a value of 12.5 cents. The big contract is worth $1000 per
point. There are 100 ticks per point and each tick is worth $10. The open
outcry pits of the NYMEX open at 9:00AMand close at 2:30PM.Likethe
S&P and Nasdaq contracts, crude futures trade on the Globex after hours.
Globex trading begins at 6:00PMand closes at 5:15PMthe following day.