F.A.Q.

Event Contracts are a fixed risk, non-leveraged way to play daily options in 10 key futures markets. 

They allow you to take a position on daily price movements and predict whether the market will close above or below a certain price with a simple Yes or No.

There are MANY ways to trade event contracts, including popular strategies like: hedges, strangles, ORB, purchasing at key support/resistance and more.

You can trade the premiums intraday just like you would with daily options, or hold them into close

If you hold a contract into close and your chosen strike is “in the money” at time of settlement, you will receive a $20 payout on that trade. If you hold a contract into close and it is “out of the money”, the contract will expire worthless.

This depends on personal risk-reward tolerance and strategy. Strikes are available in 10 point increments. The further away the strike price is from the current trading price, the cheaper contract. The closer the strike price is to the current trading price, the more expensive the contract.
To calculate the probability of a position, multiply the cost by 5. For example, if you pay $15 to predict ‘yes’, then the market is suggesting there is a 75% chance of the product closing above the listed price.

Unlike options, event contracts have a fixed risk-reward. Each contract is priced between $.25 and $19.75. The most you can lose is the amount you spend on the contract(s). The max payout on a winning contract that closes “in the money” is $20.

Winning Scenario:
You purchase an E-Mini S&P 4100 Yes contract at $5.00 and hold until end of day. The market price settles at 4115, and the contract you paid $5.00 for closes “in the money” at $20.00 for a 4x win.

Losing Scenario:

You purchase an E-Mini S&P 4100 Yes contract at $5.00 and hold until end of day. The market price settles at 4090, and the contract you paid $5.00 for expires “out of the money” and worthless. The amount you paid is the amount you lose.

You can also trade the premiums intraday without holding into close.

If you like the high reward that comes with playing $SPX 0DTEs, but you can’t stand that fight-or-flight feeling… you will love event contracts.

Event contracts offer:

  • Exposure to 10 different futures markets
  • Fixed risk/reward with no surprises
  • A great way to trade without being overexposed
  • An affordable way to hedge against larger positions
  • Good introduction to the options market

Event contracts are non-leveraged and cash settled. The contract holder either receives $20 per contract, or nothing at all. It does not give the holder a right to buy or sell a specified asset.

You can purchase anywhere from 1 to 250 contracts in a single order.

Event contracts give you access to key futures markets like equity indices, metals, energy and foreign currencies.


These markets include:

  • E-Mini S&P 500
    • E-Mini Nasdaq 100
    • E-Mini Dow
    • E-Mini Russell 2000
    • Gold
    • Silver
    • Copper
    • Euro
    • Crude Oil
    • Natural Gas


Place Your Trades programming is sponsored by Tradovate. The Tradovate app is what we all use to trade daily options using event contracts.

Click here to open an account.

Event contracts are cash settled daily based on the settlement price of the market you are trading.

Event Contracts are settled based on a price that is greater than or less than the chosen strike.
If a settlement price is exactly at a predicted price it will be settled at $0.

The price at time of settlement will determine if you have a winning trade or not.

S&P 500

Contract open – 6:00 PM ET

Settlement time – 4:00 PM ET

Nasdaq-100    

Contract open – 6:00 PM ET

Settlement time – 4:00 PM ET

Dow

Contract open – 6:00 PM ET

Settlement time – 4:00 PM ET

Russell 2000

Contract open – 6:00 PM ET

Settlement time – 4:00 PM ET

WTI Crude Oil

Contract open – 6:00 PM ET

Settlement time – 2:30 PM ET

Natural Gas

Contract open – 6:00 PM ET

Settlement time – 2:30 PM ET

Gold

Contract open – 6:00 PM ET

Settlement time – 1:30 PM ET

Silver

Contract open – 6:00 PM ET

Settlement time – 1:30 PM ET

Copper

Contract open – 6:00 PM ET

Settlement time – 1:00 PM ET

Euro FX

Contract open – 6:00 PM ET

Settlement time – 3:00 PM ET

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Deli’s Daily Video
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The fastest way to stay up to date on global markets, commodity news, economic events & more.