September Japanese Yen seems to have shaken off the huge number of shorts with its recent display of extreme volatility, and we see it continuing on its downaward path over the summer. We like buying the September 109/106 bear put spread along with selling the 114 call as a naked leg. The trade is being filled at a credit of $100 which means if it doesn’t go down, but stays below 114, we have no risk and possibly a profit depending on your transaction costs. Above 114 the risk is unlimited like a futures contract while the profit potential is limited to $3,750 plus the credit (minus commissions).
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
Phone 877 270 8403, 702 463 0718
