OPTION TRADES OF THE DAY!

4-30-10

December Cocoa has retraced 61.8% of its sell off and we are re establishing our short position with a new bear put spread with a naked leg. Based upon our expected target of the 26/25 price area, we are suggesting the following trades.  Buy the December 32/29 Bear Put Spread with a December 36 call as a naked leg.  The spread is being filled at a credit of $300 which means that as long as the market is below 3600 on expiration, the trade would be profitable by that amount, if the market is below 2900 on expiration you would have an additional $3,000.  The risk above the 3600 level is unlimited. 

 

We also like out of the money puts, we would suggest any puts above from 2500 and up.

 

See attached chart

 cocoa12-10.JPG

Please contact us with any questions or assistance in placing these trades

There is a substantial risk of loss in trading futures and options

Past performance is not indicative of future results.

The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY AREINTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY,OR OUT-OF-THE-MONEY OPTION. FURTHERMORE, THE PURCHASERWILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HISRIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STRIKEPRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICESMOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYINGFUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR EVEN MOVE IN THE OPPOSITE DIRECTION OF THE UNDERLYING FUTURES CONTRACT.

Paul Brittain

Whitehall Investment Management Las Vegas

Email: paul@binvstgrp.com

Email: rich@binvstgrp.com

Phone 877 270 8403, 702 463 0718

Paul Brittain
Commodity Trading School
877-270-8403
702-463-0718
info@commoditytradingschool.com
paul@binvstgrp.com