OPTION TRADES OF THE DAY
2-10
July Meal appears to be bottoming as we head into what is normally a bullish time of year based upon seasonal tendencies; we are buying the 2700/3000 Bull Call spread and selling the 2500 put as our naked leg. The trade is being filled at about $100 not including commissions, which would be your risk with the market above 2500 based upon intrinsic value; below 2500 there is unlimited risk. The profit potential is limited to $3,000 with the market above 3000 minus costs.
June Gold is in a downward progression and we are adding bear put spreads with naked legs to our long option position. Buy the June 1060 put and the sell the June 1020 put as well as selling the June 1160 call as a naked leg. This trade is being filled at a credit of $800. The risk on the trade intrinsically is above 1168 where you have the same risk as being short the futures from that price. Under 1160 but above 1060 you still get to keep the premium you collected minus commission, under 1020 you would have an intrinsic profit of an additional $4,000.
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 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.
Paul Brittain
Whitehall Investment Management
877-270-8403
702-463-0718
Paul Brittain
Commodity Trading School
877-270-8403
702-463-0718
info@commoditytradingschool.com
paul@binvstgrp.com
