OPTION TRADE OF THE DAY!
12-7
March Wheat appears to have satisfied its Fibonacci retracement needs with the highs that were established over the last thirty days and the market is looking like it wants to follow its seasonal tendency to drop in price. We are buying the March Wheat 550/500 bear put spread and selling a naked call with a strike price of 610. The trade has two levels of risk; the first is if the market is trading above 550, but below 610 on expiration we would lose the premium paid ($150) + transaction costs. The second is if the market goes above 610 the trade has unlimited risk like a futures contract. The profit potential on the trade is limited to $2500 MINUS commissions and fees.
There is a substantial Risk of Loss in Trading Futures and Options
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.
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.
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.
To be removed from this service email paulbinvstgrp.com with REMOVE for the subject
Paul Brittain
Whitehall Investment Management
2928 Lake East
Las Vegas Nv 89117
877-270-8403
*There is a substantial risk of loss in trading futures and options.
Paul Brittain
Commodity Trading School
877-270-8403
702-463-0718
info@commoditytradingschool.com
paul@binvstgrp.com
