By the Lind Plus Trade Desk (Frank Cholly, Matt Roma & Jeff Friedman)
Gasoline futures ( RBOB ) are very close to $1.00 currently. The driving season is just around the corner and inflation is coming not too far down the road with an $800 billion stimulus bill being signed into law this week.
We are also beginning to see other signs in the data that the economy may be bottoming. Most recently, we’ve seen better that expected retail sales, PPI and LEI reports.
We expect that energy prices will move higher from now through May and June. We are recommending traders buy the July RBOB 125/135 call spreads at 3 cents ( $1,260.00 ), maximum risk plus commission. The spread has a maximum value of 10 cents ( $4,200.00 ), minus cost and commission. This spread has 126 days, expires on 6/25/2009.
If you are interested or would like another strategy please call our trade desk at (866) 231-7811.
Futures trading involves the substantial risk of loss and is not suitable for all investors.
