OPTION TRADE OF THE DAY!
3-01
June Bonds appear to have run out of steam near their recent highs so we are taking the opportunity to establish an additional short position at this level which would average up our previous spread. Buy the June 117/114 bear put spread with a 120 call as the naked leg. The trade is currently being bid at $110 which would be your risk with the market trading over 117 and under 120, not including transaction costs, over 120 you have unlimited risk. The profit potential is limited to $3,000.
June Yen has corrected its recent sell off by retracing back to its Fibonacci retracement area. We see the Yen continuing lower into sub 110 prices in the next few months. Buy the June 111/108 bear put spread and sell the 117.50 call as a naked leg. We are getting filled at $50 before transaction costs which the two combined is the risk with the market under 117.50 and above 11100, above 117.50 there is unlimited risk. The profit potential is limited to $3,750 with the market below the short put at expiration.
July Wheat appears to be heading higher into spring (harvest rally) so we are buying the 540/600 July Bull Call spread and selling a July 480 put as our naked leg. The trade should be filled at a small credit which means that the risk between 480 and 540 is limited to commissions, with the market under 480 there is unlimited risk. The profit potential is limited to $3,000 with the market above 600 on expiration.
Please contact us with any questions or if you need assistance putting this trade together.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS
There is a substantial risk of loss in trading futures and options.
PLACING CONTINGENT ORDERS SUCH AS “STOP LOSS” OR “STOP LIMIT” ORDERS WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS. SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.
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.
To be removed email paul@binvstgrp.com with REMOVE as the subject
Paul Brittain
Whitehall Investment Management
Commodity Trading School
877-270-8403
