I have mentioned before in early May this year, that there was a wave of selling in American stocks, and the market brought American stocks to a very important technical bottom.
Looking back now, the US stock market has built a long-term technical bottom in June and July (see the chart below).
The US stock market has hit bottom?
In my opinion, the US stock market has bottomed out for the following reasons:
First, the price of US crude oil, which has the greatest impact on inflation, has dropped from the highest point of $130 this year in February to about $90 now.
Second, the cracking price difference of refined oil products has also dropped from the highest point of $60 in spring to less than $40 now. This is important for lowering gas prices at gas stations, and it also alleviates the Federal Reserve's worries about inflation.
Third, the job market is vibrant, which contradicts the fact that the overall economy has technically entered recession.
Fourth, the retail inventory has greatly increased, which also reduces the inflationary pressure from the supply side.
Fifth, if the U.S. economy really enters a short-term recession as some economists say, it will be a driving force for the U.S. stock market.
The stock market represents the economy next year, and my personal opinion is that there is no reason for the Federal Reserve Bank to increase interest rates further and significantly after September, so that the biggest obstacle to the stock market's progress-high interest rates-will gradually disappear.
Managing Stock Market Volatility Risk by Using US Stock Index Options
Of course, there will always be big and small Market volatility in the long rising process of the stock market. In this case, it is necessary to make full use of stock index derivatives to hedge risks and increase returns.
American stock index derivatives market is the most mature stock index derivatives market in the world at present, and there are dozens of stock index derivatives products for everyone to choose from by Chicago Mercantile Exchange (CME).
Everyone is familiar with the E-Mini S&P index futures and E-Mini S&P index standard options of Chicago Mercantile Exchange, but do you know that Chicago Mercantile Exchange also trades E-Mini S&P index ultra-short-term weekly options with three different maturity dates at the same time?
Now let's briefly introduce these three E-Mini S&P weekly options with different maturity dates.
First,E-Mini S&P index standard option is an American option,That is to say, the holder of the option can exercise it at any time. E-Mini S&P short-term weekly options are European options, which means that holders of weekly options can only exercise their rights on the expiration date.
Second, the expiration dates of these three short-term weekly options are 3:00 p.m. every Monday, Wednesday and Friday.（Chicago time ）
Third, these three short-term weekly options are spot handover, and the handover products are E-Mini S&P index futures (ES) of the current month.
The short-term weekly options trading codes of E-Mini S&P index due every Monday are E1A, E2A, E3A and E4A, which represent different maturity dates on four Mondays of each month.
The short-term weekly options trading codes of E-Mini S&P index due every Wednesday are E1C, E2C, E3C and E4C, which represent different maturity dates on four Wednesdays of each month.
The short-term weekly options trading codes of E-Mini S&P index due every Friday are EW1, EW2, EW3 and EW4, which represent different maturity dates on four Fridays of each month.
What are its benefits?Its biggest advantage is that the buyer of options can get the maximum profit with the minimum cost.
In addition to the above three short-term weekly options, Chicago Mercantile Exchange launched the E-Mini S&P Index weekly options due on Tuesday and Thursday in April this year.
These two weekly options are European options, which means that only the expiration date of the transaction can be exercised.
The trading codes of the two are Tuesday:E1B, E2B, E3B, E4B, E5B;Thursday:E1D, E2D, E3D, E4D, E5D.With these two weekly options, American stock index derivatives traders around the world can enjoy trading "doomsday options" every day.
$E-mini Nasdaq 100 - main 2209(NQmain)$ $E-mini S&P 500 - main 2209(ESmain)$ $E-mini Dow Jones - main 2209(YMmain)$ $Gold - main 2212(GCmain)$ $Light Crude Oil - main 2208(CLmain)$
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