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Posted July 22, 2026 at 9:45 am
When trading the Nasdaq, utilizing options spreads can offer a strategic way to navigate market direction while strictly defining your risk parameters. In this breakdown, Jim Iuorio of TJM Institutional Services walks through two distinct options spread scenarios for the Nasdaq over a 10-day timeframe.
First, Jim details a bullish approach using a call spread, outlining the exact entry costs, maximum potential loss, and maximum potential gain based on the width of the spread. He then pivots to a bearish scenario, illustrating how a put spread can be structured to capitalize on a market downturn with the same strictly defined risk metrics.
Whether you expect the market to rally or fall, understanding the math behind tick values, spread widths, and premium costs is essential for retail traders looking to utilize CME Group options on futures.
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Originally Posted July 22, 2026
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This material is from CME Group and is being posted with its permission. The views expressed in this material are solely those of the author and/or CME Group and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Trading options on futures contracts involves substantial risk and is not suitable for all investors. Selling (writing) options on futures exposes the seller to potentially unlimited risk of loss, as the seller may be required to fulfill the terms of the contract if the market moves unfavorably. Losses can exceed the initial margin or premium received. Before engaging in short options strategies on futures, you should carefully consider your financial situation, investment objectives, and risk tolerance. You must fully understand the risks involved, including the possibility of losing more than your initial investment. The Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) require that you receive and review the Options Disclosure Document (ODD) before trading options on futures. This document explains the characteristics and risks of options trading.
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