Buy the Bonds

_{OPTION TRADE OF THE DAY!}

5-8

T-Bond Call Spread- the Bond market has reached our target and could and should retrace to about the 124 level in the next few days or weeks. Since the June options only have about two weeks there are two ways to go. The more aggressive play would be actually buying the June 124 calls which although have limited risk of $400 but only two weeks to work out. The second way would be to buy the July 120/123 Bull Call spread and sell the July 115 Puts as a Naked Leg. This trade has unlimited risk under 115 however the risk above 115 and below 120 is limited to the premium paid which should be about $100. The profit potential is limited to about $3,000 before transaction considerations (commission and fees X3). This should be a quick trade due to the fact that this market dropped 10 points in the last few weeks and is oversold and badly in need of a digestive move.

_{PLACING CONTINGENT ORDERS SUCH AS “STOP LOSS” OR “STOP LIMIT” ORDERS WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS. SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.}

_{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. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. 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 ARE}

_{INTENDED 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 PURCHASER}

_{WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS}

_{RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STRIKE}

_{PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES}

_{MOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYING}

_{FUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR}

_{EVEN MOVE IN THE OPPOSITE DIRECTION OF THE UNDERLYING FUTURES CONTRACT.}

_{Visit www.commoditytradingschool.com to learn more about option trading}

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_{Paul Brittain}

_{Alaron Trading}

_800-935-6492

_702-255-4107

_{702-256-0186 fax}

_{pbrittain@alaron.com}