OPTION TRADES OF THE DAY!
4-9-10
October Cotton appears to be putting in a definitive top as we get further into what should be a seasonally weaker time of year. Cotton is also trading at the upper end of its historic trading range which makes the following recommendation even more appealing. Buy the October 75/70 Bear Put Spread and sell the 80 call as your naked leg, the spread is currently being filled at a +$300 credit. The risk on the trade is above the short call where you would have unlimited risk, the profit potential is limited to the net premium collected plus the spread potential which is $2,500 minus commissions.
August Feeder Cattle are trading within a short reach of their all time highs and have mostly been driven by fund buying rather than anything more substantial or meaningful like demand or usage. We are adding on to our previous bearish position at these levels. Buy the August 112/104 Bear Put Spread and sell the 120 Call as a Naked Leg. The trade is being filled at 20 tics or $100 credit, the risk on the trader is unlimited above 120 while the profit potential is limited to 8 cents or $4,000 plus premium collected minus commissions.
Please contact us with any questions or assistance in placing these trades
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
