Option Trades of the Day – Swiss Franc and Dollar Index

<p style="text-align:left;"><strong>2-7-2011</strong> We see the possibility of a major turn occurring in the dollar versus the foreign currencies.  Since turns like this are extremely choppy we will start out by positioning ourselves with “plain vanilla” options. </p> <p>First Trade- Buy the June Swiss Franc 94 put for $250 or less.  This is a limited risk trade without margin and unlimited profit potential.</p> <p><img src="http://www.traderplanet.com/images/PaulBrittain/juneswiss020711.JPG" width="402" height="217" alt="juneswiss020711.JPG" style="border:0px solid;" /></p> <p>Trade #2 Buy the June Dollar Index 86 Calls for $300.  We see the American economy as recovering better than our counterparts.  Enough said.</p> <p><img src="http://www.traderplanet.com/images/PaulBrittain/junedx020711.JPG" width="392" height="216" alt="junedx020711.JPG" style="border:0px solid;" /></p> <p style="text-align:center;"><b>_{There is a substantial risk of loss in trading futures and options. <br />}</b><b>_{Past performance is not indicative of future results.}</b></p> <p style="text-align:left;"><b>_{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.}</b></p> <p><b>_{FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE}</b><b>_{PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE}</b><b>_{INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON}</b><b>_{THE UNDERLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT}</b><b>_{AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY,}</b><b>_{OR OUT-OF-THE-MONEY OPTION. FURTHERMORE, THE PURCHASER}</b><b>_{WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS}</b><b>_{RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION’S STRIKE}</b><b>_{PRICE COMPARES TO THE UNDERLYING FUTURE’S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES}</b><b>_{MOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYING}</b><b>_{FUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR}</b><b>_{EVEN MOVE IN THE OPPOSITE DIRECTION OF THE UNDERLYING FUTURES CONTRACT.}</b></p>