If a trader wanted to take a bullish or bearish view on the index they could set up an options trade with a good risk vs. reward ratio. First we have to establish targets. Using the Apr ES 1555 Straddle, we can calculate what the expected upside and downside move is by expiration. Priced around 34 points, this gives us an upside target of 1591 and a downside target of 1523 by April expiration. With the ES futures at 1557 we can now set up trades.
Bullish set up:
Buying the Apr ES 1580-1590 Call Spread for 2.50
Risk: $125 per 1 lot
Reward: $375 per 1 lot
Bearish set up:
Buying the Apr ES 1530-1520 Put Spread for 2.00
Risk: $100 per 1 lot
Reward: $400 per 1 lot
Both of these trades set up for great return on invested capital with limited risk.