Investing 101

Another type of positioning analysis is Net Futures Positioning, which is the split between long and short positions in the futures market.

Traders with long positions expect future prices to rise, while short position holders believe asset prices will fall. 

This data is available for the S&P 500 under the [chart tool](https://toggle.ai/analyze/spx/spx.futures_positioning?view=chart). Currently, the indicator sits at a value of -45.93%

![spx net futures positioning](https://storage.googleapis.com/toggle-webcm-prod/https://storage.googleapis.com/toggle-webcm-prod/Screenshot_2023_04_26_at_9_46_34_AM_512123eb34/Screenshot_2023_04_26_at_9_46_34_AM_512123eb34.png)

The above value can be interpreted as the number of positive futures using the following formula: (x + 100%)/2

In this case, (-45.93 + 100/2) = 27% of total futures positions are positive and 73% (100% - 27%) are negative. This implies that a larger majority of the market is bearish on future price action in the S&P 500. 

The indicator sits on a scale with values of +100 to -100, and the middle (0) shows a 50/50 split between the number of long and short positions. 

You might have heard of positioning in equities but did you know net futures positioning can explain the split of options in the futures market?

Net Futures Positioning

Options

### ATM Short Call Spread (aka "Credit" Call Spread) 
![atm short call spread bear](https://storage.googleapis.com/toggle-webcm-prod/https://storage.googleapis.com/toggle-webcm-prod/atm_short_call_spread_bear_ae1a13d502/atm_short_call_spread_bear_ae1a13d502.png)
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### Long Put
![long put](https://storage.googleapis.com/toggle-webcm-prod/https://storage.googleapis.com/toggle-webcm-prod/long_put_6dc41c319e/long_put_6dc41c319e.png)
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### ATM Long Put Spread (aka "Debit" Put Spread) 
![atm long put spread](https://storage.googleapis.com/toggle-webcm-prod/https://storage.googleapis.com/toggle-webcm-prod/atm_long_put_spread_c957976ee5/atm_long_put_spread_c957976ee5.png)\
&nbsp;

### Short Iron Butterfly
![short iron butterfly](https://storage.googleapis.com/toggle-webcm-prod/https://storage.googleapis.com/toggle-webcm-prod/short_iron_butterfly_ffb56feb93/short_iron_butterfly_ffb56feb93.png)
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### Bearish Skewed Iron Butterfly (aka Put 1x2x1)
![bearish skewed iron butterfly](https://storage.googleapis.com/toggle-webcm-prod/https://storage.googleapis.com/toggle-webcm-prod/bearish_skewed_iron_butterfly_c5f1787b32/bearish_skewed_iron_butterfly_c5f1787b32.png)

### Put 1x2
![put 1x2](https://storage.googleapis.com/toggle-webcm-prod/https://storage.googleapis.com/toggle-webcm-prod/put_1x2_08614789cd_bdd756a456/put_1x2_08614789cd_bdd756a456.webp)

Bearish Option Strategies

ATM Short Call Spread (aka "Credit" Call Spread)

Long Put

ATM Long Put Spread (aka "Debit" Put Spread)

Short Iron Butterfly

Bearish Skewed Iron Butterfly (aka Put 1x2x1)

Put 1x2

Net Futures Positioning