OPTION TRADE OF THE DAY!
9-14
December Cotton recently completed its Fibonacci Digestive move to the upside and could continue in its journey lower fulfilling its seasonal tendency due to harvest pressures. We are taking advantage of this with Bear Put Spreads with Naked Legs. Buy the December 6100/5700 Bear Put Spread and sell the December 6500 Call as a naked leg. The spread is costing $175 before commission considerations of which there are three. This is the risk on the trade with the market about the primary put (6100) and below the naked 6500 call, above 6500 there is unlimited risk. The profit potential is limited to a maximum of $2,000 before deducting the premium paid and transaction costs.
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.
