OPTION TRADES OF THE DAY!
5-04-10
September Coffee- Yesterdays 300+ rally fulfilled the Coffee markets Fibonacci digestive needs with a 76.4 % retracement which is verified with today’s lack of follow through as well as a sell off. We are seeing this market as a potential selling opportunity based upon both these technical as well as seasonal fundamental factors. Buy the September 135/125 Bear Put spread and sell the September157.5 call as a naked leg. The trade is being filled at “even money” which means the only cost is your transaction costs which would also be your risk with the market under the short call of 157.50, above that price the trade has unlimited risk. The profit potential is limited to $3,750 with the market under 125.
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
