OPTION TRADES OF THE DAY!
4-15-10
July Natural Gas is setting up for either a change in the overall trend or at least an upside correction of its recent slide. We are buying the July 460/500 bull call spread and selling the 380 put as a naked leg. The trade is being filled at even money or $0 before commission considerations which gives the trade only commission risk between 380 and 460, below the short put you have unlimited risk, the profit potential is limited to $4,000 with transaction costs (subtract them). Our target is above 5.00 before expiration.
December Silver should be topping out in this range, we are buying the December 1700/1600 bear put spread and selling the December 21.50 call to collect a credit of $2,000 on the spread, as long as the market remains under 2150 the credit minus commissions is yours to keep, above 2150 there is unlimited risk. The profit potential is $5,000 plus the credit of $2,000 minus three commissions. We are also buying the deep out of the money 1100 puts as a kicker. They are $250 each. We feel that the market can sell off to 8 or less by expiration.
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
