If you are a fan of volatility and wild rides in the markets, you are probably enjoying the first month of trading for 2015. Central Banks around the globe have made things interesting, as some of their decisions have sent secondary markets into frenzy. Crude oil continues to grab attention, and it has consumers and investors both asking, “How low can it go? “

In the Eurozone, we started off the week wondering how elections results in Greece would be felt in the currency markets. The euro has continued to push lower, but at a somewhat stable pace. The next question that many are asking is, “Will other countries follow the path Greece seems intent on taking?”

Greece plans to rework the terms of the last EU bailout, something Germany and the rest of the EU probably do not want to do. If it becomes a stalemate, you could have the possibility of Greece leaving the EU. That could send the euro currency on a tumble we haven’t seen before.

As concerns grow greater in Europe, I think investors will continue to look for safe havens. Right now, with a strong dollar, the U.S. markets seem like a good place to be. Even as the U.S. equity markets are on a wild ride, I think they still show potential growth to the upside. They have provided some of the best returns over the last 24 months, and I think the low interest rate environment will continue to help that trend move forward.

  • I like buying the March E-Mini S&P 500 2040 calls at 10 points ($500.00) or better. This trade is long premium, so risk is defined to the cost of entry plus fees and commissions.
  • I am looking for an initial exit target of 25 points.
  • If you are able to trade multiple contracts, I would try and scale out in 10 point increments.
  • If this market moves down ahead of expiration (03/20/15), I would try and limit a loss to 5 points. I like using the call to be able to ride through the volatility with defined risk.

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RISK DISCLOSURE: THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES AND OPTIONS TRADING.  THIS REPORT IS A SOLICITATION FOR ENTERING A DERIVATIVES TRANSACTION AND ALL TRANSACTIONS INCLUDE A SUBSTANTIAL RISK OF LOSS. THE USE OF A STOP-LOSS ORDER MAY NOT NECESSARILY LIMIT YOUR LOSS TO THE INTENDED AMOUNT.  WHILE CURRENT EVENTS, MARKET ANNOUNCEMENTS AND SEASONAL FACTORS ARE TYPICALLY BUILT INTO FUTURES PRICES, A MOVEMENT IN THE CASH MARKET WOULD NOT NECESSARILY MOVE IN TANDEM WITH THE RELATED FUTURES AND OPTIONS CONTRACTS.