Market Overview

PreMarket Prep Trade Of The Day: Bitcoin Futures

PreMarket Prep Trade Of The Day: Bitcoin Futures

Every day on PreMarket Prep, hosts Joel Elconin and Dennis Dick highlight over a dozen key morning movers to keep an eye on throughout the day. Below is the trade we discussed the most today.

Bitcoin Futures

Bitcoin futures commenced trading on Sunday night at 6:00 p.m. ET. The Bitcoin cash market was volatile over the week as some nervous investors wanted to exit ahead of the launch. In fact, the cash market traded down to $13,674.90 Saturday, but has now rebounded to the mid $16,000 handle.

With respect to futures, the opening print of $15,000 stands as the low for the session and it traded to $18,850 before retreating. At time of writing, the futures were holding a solid $1,000+ premium to the January contract (by expiration they will be at the exact same price).

As of 9:15 a.m., approximately 3,000 contracts changed, which is minuscule compared to the volume in the cash market. Dennis Dick opines that some of the hedge funds or large institutions that want to get involved may be waiting for the CME to begin trading as it represents five bitcoins opposed to only one at the CBOE.

Investors should keep in mind, that since many brokerage firms don't allow shorting, the current market structure strongly favors the buy side.

The following chart comes from Jim Angel at Seeking Alpha.

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Catch the whole show below!

You can listen to the show live every day from 8-9 a.m. ET here, or catch the podcast on iTunes, Soundcloud and Stitcher.

PreMarket Prep is a daily trading ideas show hosted by former floor trader Joel Elconin and prop trader Dennis Dick. You can listen to the show live every day from 8-9 a.m. ET here or on YouTube Live. The podcast is available on iTunes, Soundcloud, and Stitcher.


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